Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rose 1.1% to close near $2,766 despite upticks in Treasury yields and the dollar after fresh tariff concerns pushed investors toward safe havens ahead of the Fed’s meeting on monetary policy. Silver climbed 47 cents to finish at $30.73 an ounce.

President Trump said yesterday that he wants new tariffs on imported pharmaceuticals, steel, and computer chips. The new threats came one day after Columbia averted a trade war with the US by reportedly agreeing to accept military aircraft carrying deported immigrants.

In addition, newly confirmed Treasury Secretary Scott Bessent floated a plan for universal tariffs starting at 2.5% and rising by that amount every month, according to the Financial Times. Trump reported said this amount was too low.

Adding to safe-haven demand, the White House froze $3 trillion in government spending, throwing the continuation of many important programs and projects into doubt. Given that the funds were legally approved by Congress, the order sets up a constitutional showdown at the Supreme Court.

The dollar picked up 0.5% against major rivals as forex traders speculated that the new tariffs would likely increase inflation and curtail the Fed’s ability to reduce interest rates.

While the Fed is almost universally expected to leave rates unchanged this week, the markets will pay attention to how it handles Present Trump’s recent demand at Davos that global interest rates need to be lower.

Benchmark 10-year Treasury yields also edged up after tumbling yesterday on worries about the disruptive technology of China’s AI startup DeepSeek. Concerns that the low-cost AI platform could harm the viability of major US AI companies caused a massive selloff in US tech shares but have faded today.

Platinum and palladium slipped 0.4% and 0.6%, respectively.

At the New York spot close: gold gained $29.30 to $2,766.80; silver climbed 47 cents to $30.73; platinum dipped $3.35 to $943.55; and palladium shed $6.25 to $960.75 an ounce.