Gold Sets New All-Time High, Silver Falls Flat To Start Week

 

Gold Sets Fresh All-Time High, Silver Falls Flat Ahead of Auto Tariffs

(Bullion News Network) – Gold’s historic run continued today, with the precious metal establishing yet another all-time high amid a wide range of stressors and uncertainty in the United States. On April 2nd, U.S. President Donald Trump will introduce what he has called “liberation day” for American tariffs. According to White House press secretary Karoline Leavitt, the President will unveil tariffs on Wednesday that apply to most of the United States’ trading partners. Although the specific plans and implementation details are not yet clear, tariffs are expected to begin on imports from countries that import oil or gas from Venezuela. On Thursday, a blanket 25% tariff on automotive sector imports is scheduled to begin, a move that some economists say could raise prices for American consumers. 

This fresh round of tariffs comes on the heels of a number of aggressive tariffs by President Trump, who has vowed to stimulate American industries and raise revenues through his unique brand of economic policy and diplomacy. Canada and Mexico were targeted with tariffs beginning in February, although both countries managed to secure delays on those import fees in February and March. The White House had previously stated that these delays could expire on April 2nd, but it is unclear whether the tariffs will immediately go into effect on that date. Steep tariffs on China, as well as on imported steel and aluminum, are two of the largest tariffs that have gone into effect so far. 

Concerns about how the White House’s tariffs will impact the American economy have driven uncertainty and volatility on Wall Street. The S&P 500 and Nasdaq logged one of their worst quarters in years to round out March. Today, markets staged a moderate recovery as traders brace for Trump’s ‘liberation day’ tariffs on Wednesday. The victory on Wall Street was hard-fought, with several notable swings characterizing a volatile trading day while American investors raced to hedge their bets against uncertainty. CNN’s Fear and Greed Index spent the entire month of March in either the ‘fear’ or ‘extreme fear’ ranges, and markets will end the month in ‘extreme fear.’

This quarter’s tariff-fueled market anxiety has been a major boon for safe haven assets, including gold. The precious metal soared past multiple new all-time highs, crossing $3,125 per troy ounce today for the first time ever. Today, the precious metal gained just under $40 per troy ounce, bringing the metal’s gains to 19.2% on the year. Traders will be closely watching the extent of President Trump’s tariffs heading to see where demand for precious metals may be heading. Later this week, an initial jobless claims report may provide more insight into the strength of the labor market.

At the press conference following the FOMC’s March meeting, Federal Reserve Chair Jerome Powell suggested that the White House’s tariff plans may impact the Fed’s timeline for lowering interest rates. Mr. Powell says that an unexpected drop in the labor market or a disproportionate decline in the inflation rate could incentivize quicker action from the FOMC. Given the role that interest rate cut speculation played in gold’s price action in 2024, traders should expect that major news concerning inflation or the job market could trigger heightened demand for the yellowish precious metal. 

Despite rumors of a silver short squeeze, silver prices moved little today. Prices dropped substantially at 8:40 AM CST, pulling the spot price of silver down to $33.61. Traders recouped some of these losses later in the day, and silver ended down just a few cents from Friday’s closing price. Despite the middling start to the week, silver is up substantially on the year. Since January 1st, silver prices have increased 18.2%.