AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

3/4/2025: Gold gains as tariffs begin, other metals little changed

Source: Dana Samuelson, American Gold Exchange

Austin — Gold gained 0.7% and US treasuries were bid as investors fled to safety amid the growing uncertainty over how much tariffs might affect the slowing US economy.

The US dollar and US equities markets, which tumbled precipitously yesterday over looming tariff concern, tumbled further in early trading today after tariffs of 25% on Mexico and Canada and 20% on China were enacted at midnight.

The tit-for-tat tariff response, increasing fears of full-blown trade wars, was quick. Canada announced $30 billion of US goods would be tariffed effective immediately with another $125 billion to follow in three weeks. China announced an additional 10% to 15% tariffs on select US goods as well as import restrictions on others. Mexico will announce tariff countermeasures Sunday.

The dollar, which plunged 100 basis points on the US dollar index yesterday, continued its skid today, falling another 58 basis points today, for its sharpest two day decline in over a year and it’s lowest value since December.

The CME FedWatch tool indicated that the odds of the Fed cutting the Fed funds rate had increased from 25 basis points to 75 basis points this year. While tariffs are initially viewed as inflationary, higher prices could slow consumer spending, creating deflation later in the economic cycle. Market participants anticipate tariffs will slow the US economy enough to require the Fed to ease more this year than anticipated just last week.

New York spot gold gained $19.40 to $2,009.60; silver added 7 cents to $32.10; platinum eased $1.64 to $956.96; and palladium edged $2.20 higher to $953.70 an ounce.