Economy News – Follow-up
On Monday, gold prices experienced a notable increase of over 1%, rebounding from their lowest level in three weeks registered during the previous session. This upward movement was primarily fueled by a weaker dollar, coupled with heightened concerns surrounding the U.S. customs duties policy, which has intensified demand for gold as a safe-haven asset.
In immediate trading, gold rose by 1.1% to $2,891.29 per ounce, while U.S. gold futures surged by 1.9% to $2,902.30 per ounce.
The dollar index saw a decline, dropping from a peak not seen in more than two weeks, thereby making gold relatively less expensive to holders of other currencies.
Anticipation is building around President Trump’s announcement on Monday regarding the implementation of customs duties set to take effect on Tuesday morning on imports from Canada and Mexico. Trump has indicated his commitment to impose a 25% tariff on imports from these countries; however, the actual enforcement of this decision has been delayed for a month, with the deadline concluding tomorrow.
In addition to tariffs, political tensions between Trump and Ukraine President Volodymyr Zelenskyy have emerged, further contributing to market uncertainty. The latest meeting between the two leaders ended in a sharp disagreement, adding to the already precarious sentiment driven by weak economic indicators and ongoing commercial fluctuations in the U.S.
U.S. Secretary of Commerce Howard Lootnik confirmed that tariffs on goods from Canada and Mexico will commence on Tuesday. Additionally, Trump revealed plans to increase tariffs on Chinese goods to 20%, effectively doubling the previous rate of 10% enacted on February 4.
In the broader context of precious metals, platinum experienced a slight decrease of 0.2%, settling at $945.45 per ounce, while palladium rose by 1% to $928.54 per ounce. Silver prices also saw an increase, climbing 0.5% to $31.30 per ounce.
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