From Financial Modeling Prep: 2025-02-03 02:17:02

Gold prices fell from record highs due to a surge in the U.S. dollar following Trump’s tariff announcement on China, Canada, and Mexico. Spot gold dropped 0.7% to $2,780.56 an ounce, while gold futures fell 0.8% to $2,810.30 an ounce. The tariffs are expected to drive inflation higher, impacting gold’s long-term prospects.

The U.S. dollar’s strength led to the decline in gold prices, as investors sought the dollar as a safe-haven asset. Trump’s tariffs caused the dollar to rise, impacting gold’s appeal. The trade tariffs are set to take effect soon, potentially reducing the Fed’s incentive to cut interest rates further, affecting gold prices.

Platinum and silver prices also dropped following the tariff announcement, with platinum futures falling 1.9% to $1,024.0 an ounce and silver futures declining by 1.5% to $31.795 an ounce. These metals, like gold, had seen significant gains recently due to market uncertainty and geopolitical tensions.

Amid global market volatility, gold remains a safe-haven asset for investors looking to hedge against stock market fluctuations. The yellow metal historically performs well during economic and geopolitical instability, driving its demand higher. The Commodity API offers real-time data on precious metal prices, providing essential insights for investors tracking market trends.



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