Gold prices fell on Thursday as the U.S. dollar gained strength after President Donald Trump announced that 25% tariffs on imports from Canada and Mexico, along with an additional 10% levy on Chinese imports, would take effect on March 4. This statement surprised markets, as Trump had said just a day earlier that the tariffs would be delayed by a month.
April gold futures were last trading at $2,901.10 per ounce, down $29.50 from the previous day, continuing a correction after Monday’s record high of $2,963.20 per ounce.
Despite ongoing uncertainty in global trade and increased demand for safe-haven assets, gold prices declined as Trump confirmed on his Truth Social account that the tariffs would not be postponed until April but would instead take effect next week. Additionally, Chinese imports will face an extra 10% tariff, raising the total duty from 10% to 20%.
If the U.S. implements these tariffs next week, both Canada and Mexico plan to introduce retaliatory measures on American products, which could slow economic growth and drive inflation higher in all three countries.
Trump’s remarks also had a significant impact on currency markets, with the U.S. dollar gaining sharply. The ICE Dollar Index was last seen at 107.02 points, up 0.62 points.
At the same time, U.S. Treasury yields rose. The two-year note yield climbed 3.1 basis points to 4.113%, while the ten-year note yield reached 4.294%, also up 3.1 basis points.