Gold prices get a new batch of Trump’s adherence to customs duties

Gold prices rose after US President Donald Trump announced that it is likely to impose customs duties on Mexico and Canada early next month even as he refrained from imposing customs duties on China immediately, according to the American Bloomberg Network.

Gold prices rise

Gold prices recorded modest gains on Monday to trade at about 2725 dollars an ounce on its way to the highest level of closure since early November, where analysts weigh the possible consequences of American customs duties that reach 25% on its neighbors and if this step is approved, it threatens to ignite a trade war.

Imposing customs definitions

Trump also indicated that he is still considering imposing comprehensive customs definitions on all imports to the United States, but he said he was “not yet ready.”
Also read: The anticipation prevails in the gold market hours before Trump’s inauguration
Futures for silver contracts increased shortly after Trump’s statements, as the prices of delivery contracts in March increased by 1.2% to $ 31.525 an ounce before its gains shrink at a time when Mexico is the largest silver producing country and it is not clear whether customs duties will be applied to metal imports .

Gold was affected by customs duties

However, the possibility of silver and gold being affected by comprehensive customs measures led to the vibration of the market in recent weeks, prompting delivery futures in New York to high levels.

Expectations of a precious metal height

“The implementation of the Trump plan for customs duties in light of the risk it raises in the stock markets would push the bullish momentum of gold.”
Analysts also believe that there are inflation expectations, as Trump’s local agenda of lowering taxes and increasing spending indicates constant pressure from prices this year.
Also read:
This may limit the ability of the Federal Reserve to continue to reduce monetary policy. The high borrowing costs are usually an obstacle to gold because it is not the revenue.

Records for gold

Gold recorded a series of records in 2024, when the gains were driven by the Federal Reserve turning into a more flexible monetary policy in light of geopolitical tensions and purchases by central banks.
The precious metal may receive another batch of demand for safe haven assets amid concerns about the immigration policy pursued by the new president as well as the increasingly tense American relations with other countries.