Gold prices stayed the same on Tuesday as people worried that U.S. President Donald Trump’s new taxes on goods from Canada and Mexico might make prices go up and hurt the economy.
Key Points:
– The price of gold held at $2,892.64 an ounce early Tuesday morning. Gold futures in the U.S. were also almost the same at $2,902.90.
– Trump announced on Monday that he would impose a 25% tax on imports from Mexico and Canada, leading to fears of a trade conflict in North America and causing markets to react negatively.
– He mentioned that starting April 2, there would be new taxes on countries that tax U.S. products, and that he would increase the existing taxes on Chinese goods to 20%.
– If prices rise too much, the Federal Reserve might keep interest rates high for a long time, making gold less appealing as an investment since it doesn’t earn interest.
– St. Louis Federal Reserve President Alberto Musalem thinks the U.S. economy will keep growing this year, but there are concerns because some recent reports show weaker consumer spending and housing data.
– Investors are now looking forward to upcoming job reports for clues on how interest rates might change.
– JP Morgan stated that they believe gold prices will go up long-term and predict prices could reach around $3,000 an ounce by late 2025.
– Other precious metals: Silver stayed at $31.67 an ounce, platinum dropped to $951.60, and palladium decreased to $934.89.
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