Gold prices fell slightly on Wednesday because U.S. Treasury yields went up. Investors are watching how President Donald Trump’s tariffs might affect prices and global trade.
– Gold Prices: Spot gold dropped by 0.1% to $2,916.09 per ounce, while U.S. gold futures went up 0.2% to $2,926.10 per ounce.
– Treasury Yields: The 10-year U.S. Treasury yield rose from a four-month low. When yields rise, gold is less attractive because it doesn’t earn interest.
– Tariffs Impact: Trump’s new 25% tariffs on imports from Mexico and Canada started on Tuesday. He also doubled tariffs on Chinese goods to 20%. These trade wars could hurt the economy and increase prices for Americans, who are still dealing with high inflation.
– Retaliation: Canada and China responded by imposing their own tariffs on various U.S. goods.
– Federal Reserve’s View: Federal Reserve Bank of New York President John Williams said that these tariffs might lead to higher inflation, but thinks the current interest rates are fine and shouldn’t change for now.
– Interest Rates: The Fed has kept interest rates steady after lowering them three times last year. However, markets expect more cuts soon, possibly in June and September.
– Market News: Investors are waiting for the ADP employment report later today and the U.S. non-farm payrolls report on Friday for hints about future Fed plans.
– Other Precious Metals: Spot silver fell 0.2% to $31.90 per ounce, platinum dropped 0.2% to $958.75, and palladium declined by 0.3% to $939.00.
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