Gold price set for first weekly loss of 2025 as investors take profits
Gold dropped as the dollar pushed higher after President Donald Trump said 25% tariffs on Canada and Mexico are on track to go into place on March 4.
Trump also said he would impose an additional 10% tax on Chinese imports, moves that would deepen his fight with the nation’s largest trading partners. Bullion fell by as much as 1.7% as the US currency moved higher. A stronger greenback makes the precious metal less appealing for foreign investors as it’s denominated in the dollar.
Gold is on course for its first weekly decline since the end of December. Investors booked profits from a blistering rally that saw the metal gain more than 9% this year, with prices breaking record highs.
Trump’s comments on the timing, size and targets of his tariffs have frequently confounded global markets, while his geopolitical moves have also underscored bullion’s role as a store of value in uncertain times. Additionally, new research suggests the president’s planned levies on imports from China may hit the American economy more than official US trade data indicates.
Looking ahead, investors will be analyzing the Federal Reserve’s preferred inflation gauge on Friday for more clues about monetary policy. Treasury investors anticipate the central bank will shift its focus from inflation to growth.
Spot gold declined 1.5% to $2,873.10 an ounce as of 11:26 a.m. in New York. The Bloomberg Dollar Spot Index was up 0.6%. Silver, platinum and palladium all slipped.
