Last week, gold snapped its eight-week winning streak as the Fed signaled a more cautious approach to interest rate cuts. This week, market sentiment was largely driven by investor uncertainty surrounding President Trump’s tariff policies and U.S. employment data.
On Monday afternoon, U.S. stocks plummeted following President Trump’s tariff update, in which he stated there was “no more room for negotiation” with trading partners Canada and Mexico. Following the news, the Nasdaq Composite fell 2.6%, while the S&P 500 dropped 1.7%, as Wall Street sentiment was dampened. Meanwhile, gold gained 1%, recovering from a three-week low reached in the previous session. Both gold and silver benefited from safe-haven inflows and a weaker dollar, closing at $2,888 and $31.69, respectively.
Stocks faced renewed pressure on Tuesday as tariff-related uncertainty fueled a risk-off mood among investors. In addition to the 25% tariffs on goods from Canada and Mexico, news emerged that tariffs on certain Chinese imports would increase from 10% to 20%. Gold extended its gains from Monday, rising 0.6% to close at $2,918. Silver also breached the $32 mark, buoyed by further declines in the dollar.
On Wednesday, President Trump announced a one-month pause on auto tariffs for Canada and Mexico, a move that was well-received on Wall Street. Stocks rallied, with the Nasdaq Composite leading gains at 1.4% for the day. Gold took a breather, edging down 0.1% as investor focus shifted to Friday’s U.S. employment report.
Gold dipped again on Thursday as profit-taking and rising Treasury yields pressured bullion lower. However, continued safe-haven inflows helped limit losses, with gold closing at $2,915 and silver at $32.57. Equities, on the other hand, tumbled as escalating trade war concerns fueled risk aversion. Notably, the Nasdaq dropped 2.7%, entering correction territory, while the S&P 500 fell to a four-month low.
Despite staging a modest rally this morning, stocks ended the week in the red. The S&P 500 closed 3.2% lower, marking its worst weekly performance since September. The Nasdaq led the declines, shedding 3.5% for the week, while the Dow lost 2.4%.
This morning, the Labor Department released its employment report, showing non-farm payrolls rose by 151,000 in February, falling short of the 171,000 forecast. The weaker-than-expected data slightly increased the odds of rate cuts this year, leading to modest gains for gold and silver. Both metals ended the week 1.6% higher, with gold at $2,911 and silver at $32.84.
