Trump’s Tariffs Impact, Gold Continues Rise
Trump said Tuesday night at the White House that his administration was discussing imposing a 10% tariff on Chinese imports on Feb. 1, and on the same day he said he would impose 25% tariffs on Mexico and Canada.
He also vowed to impose tariffs on European imports without providing further details.
Despite the threats, the lack of specific plans from Trump’s first day in office has seen the dollar start the week down 1.2% against a basket of major currencies.
After two years of surprisingly persistent progress in U.S. inflation and economic growth, the Fed meets next week with one focus on the new Trump administration’s policies.
The Fed is widely expected to keep its benchmark interest rate steady in its current range of 4.25%-4.50% at its Jan. 28-29 policy meeting, having lowered it by a full percentage point since September 2024. Higher interest rates sap the appeal of non-yielding bullion.
A weaker dollar makes bullion more attractive to foreign buyers. Gold is considered a safe investment during economic and geopolitical uncertainty. It is currently trading at $2752.35 or up about 0.2% in Asian trading on Wednesday (1/22).
Source: Newsmaker.id
