Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 1.4% to close at $3,097 as the aggressive new tariffs imposed by President Trump caused major selloffs across global markets, forcing gold traders to liquidate holdings to cover losses and shorts in other asset classes. Silver shed 5.6% to finish at $31.84 an ounce.

Late yesterday, Trump declared a universal baseline tariff of 10% on products imported from other countries, with higher tariffs on nations that he thinks are mistreating America. China will now face 54% tariffs, Japan 24%, and the EU 20%. Russia, which runs a large trade surplus with the US, was left off the list.

Economists say the effective tariff rate is now the highest since the 1890s, before America had emerged as a world power. The blanket duties are widely expected to trigger retaliation resulting in trade wars that will dramatically reduce economic growth in the short term.

Meanwhile, the US services sector slowed almost to a halt in March, hitting a nine-month low on uncertainty caused by earlier Trump tariffs. More than 70% of Americans are employed in service-related businesses.

All three major US stock indexes cratered in response, wiping out some $2.5 trillion in value. The Dow and S&P 500 dropped 3.3% and 4.1%, respectively, while the Nasdaq plunged 5.3%. European and Asian markets also fell sharply.

Gold was swept up in the selloffs as investors were forced to liquidate strong performers to cover their losses.

The dollar tumbled 1.7% on fears of recession while benchmark 10-year Treasury yields retreated to under 4.1% as investors fled to the perceived safety of government debt around the world.

Platinum and palladium lost 3.6% and 4.1%, respectively.

At the New York spot close: gold dropped $42.90 to $3,097; silver shed $1.90 to $31.84; platinum lost $35.40 to $942.50; and palladium retreated $39.85 to $934.65 an ounce.