Daily Gold Update

Source:Dana Samuelson, American Gold Exchange

AustinNew York spot gold tumbled 1.2% to close the trading session just over $2,883. Silver fell 1.4% to $31.39 an ounce.

Market sentiment shifted following President Trump�s announcement that 25% tariffs on Mexico and Canada would begin March 4th, and in a surprise announcement China�s tariff rate would increase an additional 10%, totaling 20%, at the same time.

In response to the announcement the dollar gained 0.69% against the Canadian dollar, 0.31% against the Mexican peso, 0.77% against the Euro and the US dollar index, which measures the dollar against a basket of foreign currencies including the Japanese yen, the Swiss franc, the British pound and others gained 0.77%, to its highest level in a week.

The yield on the 10-year US treasury firmed up slightly following the revised tariff announcement which helped to dispel confusion as to when or if the Canadian and Mexican tariffs would begin.

The dollar and treasury yields have been in a downward trend since mid-January, helping the buoy gold to recent record highs. Today�s market action saw a reversal of those recent trends. Gold is normally inversely correlated to the international value of the dollar and US treasury yields.

US GDP for the fourth quarter of 2024 was unchanged at 2.3% in today�s first revision of the data following the advanced Q4 GDP estimate released Jan. 31st. Consumer spending for Q4 was also unchanged in today�s revised estimate which remained at 4.2% annually. Consumer spending comprises about 70% of the US economic growth.

On the international level US and Russian delegations met in Istanbul for over six hours in apparent wide-ranging talks furthering the rapprochement President Trump initiated with Russian President Vladimir Putin two weeks ago. None of the participants from either side in today�s meeting were identified. Afterwards Putin commented the continuation of talks between the two superpowers gave him �hope� of resolving �problems� between the two countries, including the war in Ukraine.

An easing of global tensions would help to ease gold�s value as a safe-haven asset in times of global turmoil.

New York spot gold fell $33.33 to $2,883.47; silver fell 44 cents to $31.39; platinum fell $14.55 to $954.75; and palladium dropped $8.90 to $924.70 an ounce.