AGE Daily Gold Update

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

4/4/2025: Gold falls on Trump tariffs

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold plunged 2.7% to close at $3,012 as global stock indexes melted down for a second day, forcing investors to take profits from liquid assets to cover losses in other areas. Bullion slid 2% for the week. Silver shed 8.8% to $29.12, posting a weekly loss of 14%.

Following President Trump's imposition of huge new tariffs on virtually every nation, China retaliated with additional duties of 34% on US goods, confirming fears that a destructive trade war has begun.

Wall Street crumbled for a second day, with all three major US stock indexes plummeting more than 5%. European and Asia markets saw similar carnage. The S&P 500 has lost more than $4 trillion in two days, breaking the record $3.3 trillion two-day loss suffered in March 2020, when then-President Trump shut down the US economy because of Covid.

Government bonds have rallied around the world, driving yields lower, as fears of a global recession mount and investors flee to safety. Benchmark 10-year Treasury yields fell under 4%.

Against this backdrop, the US labor market showed surprising strength in March, adding 228,000 jobs, far exceeding forecasts. Payrolls were increased by the return of striking supermarket workers.

But Fed Chair Jerome Powell said today that "larger than expected" tariffs are likely to harm the labor market and lift inflation, suggesting that the Fed is unlikely to reduce interest rates in the coming months.

Further pressuring gold, the dollar rose 0.8% against major rivals on the prospect that interest rates may remain higher for longer. A stronger dollar weighs on gold and other commodities by making them pricier on other currencies.

Platinum fell 4.3% today and 8.9% this week. Palladium dropped 1.1% for a weekly loss of %.6%.

At the New York spot close: gold fell $85 to $3,012; silver shed $2.73 to $29.12; platinum lost $40.50 to $902; palladium slid $10 to $924.65 an ounce.