Gold and Silver Jump As Trump Signals Tariff Relief

 

Precious Metals Jump As Trump Signals Tariff Relief

(Bullion News Network) – Gold jumped today, nearly completely recovering from a string of losses and sideways movement that began last Wednesday. The spot price of gold is set to end the day up $100/ozt in its biggest daily gain of 2025. Silver logged an even larger percentage gain on the day, adding $1.28 to its spot price per ounce. This price action drove the gold-silver ratio down 0.73:1 to 99.1:1, snapping a two-day streak of a closing GSR of 100:1 or higher. Silver remains substantially down from its recent high of over $34 per troy ounce, but the precious metal managed to squeak past the $31/ozt line for the first time since April 3rd.

The metals surge comes during what some analysts are calling one of the biggest Wall Street surges in modern history. Earlier today, President Trump announced a 90-day pause on his international tariffs, dropping individual country tariffs to just 10%. Trump’s “Liberation Day” tariff announcement last week drove both stocks and precious metals sharply lower as traders fretted over the possibility of a recession. The S&P 500 rallied to gain 9.52%, its largest single-day gain since thee financial crisis in 2008. The Dow gained 7.87%, and the tech-heavy Nasdaq posted its largest one-day gain since January of 2001. CNBC reports that today was the single “heaviest volume day in Wall Street history.”

Despite the celebration on Wall Street, economists warn that U.S. markets may not be out of the woods just yet. In the same Truth Social post where President Trump confirmed the 90-day tariff pause, the leader announced an additional tariff on Chinese imports. The move comes just hours after Chinese officials increased their own tariffs against the United States to 84%. In the latest escalation of what is shaping up to be a trade war between the two largest economies in the world, analysts say that sustained tariffs between the U.S. and China could lead to higher prices for American consumers. 

Market whiplash surrounding the tariff announcement and retraction caused one of the most rapid swings in Federal Reserve rate cut probabilities in recent memory. CME FedWatch’s projected probability that the FOMC will opt for a 25-point rate cut at its May meeting dropped from nearly 50% to just 14.4% after President Trump announced the 90-day pause on his global tariff plans. The sharp drop coincides with today’s rapid recovery in the stock market, suggesting that traders are now less confident that President Trump’s tariffs will force the Fed to act quickly and slash interest rates in order to stimulate economic growth or recovery. 

Gold will end the day within $15 of the $3,100 line. Silver is set to close normal trading hours above $31, down $3 from last week’s high of $34/ozt.