Gold dropped more than 3%, falling below $3,060 per ounce on Thursday after briefly reaching a record high above $3,160, following news that the White House would exempt precious metals, steel, aluminum, and other metals from President Trump's "reciprocal" tariffs. However, concerns about the tariffs' impact on global inflation and growth, combined with expectations of rate cuts, central bank purchases, and strong demand for gold-backed ETFs, helped limit the losses.
On Wednesday, Trump announced a 10% baseline tariff on imports from all countries, with higher rates for key trade partners, including China (34%), the EU (20%), and Japan (24%). The 25% tariff on all foreign-made automobiles also took effect today. Trump argued that these measures would support domestic manufacturing and reduce trade deficits.
Meanwhile, investors are awaiting the U.S. non-farm payrolls report on Friday for further insights into the Federal Reserve's monetary policy direction.
Source: Trading Economics
