Gold prices fell on Friday, heading for their first weekly loss of 2025, as the U.S. dollar strengthened following President Donald Trump’s announcement of new tariffs on Canada, Mexico, and China. The precious metal dropped by as much as 1.7% as the stronger dollar made gold less appealing to foreign investors.
Trump revealed that 25% tariffs on Canada and Mexico are set to be imposed on March 4, while an additional 10% tax on Chinese imports will escalate the trade tensions between the U.S. and its key trading partners. This news sent gold prices into decline, as bullion typically benefits from political and economic uncertainty, but a stronger greenback reduces its allure.
The precious metal is poised for its first weekly drop since late December, following a substantial rally that saw gold prices soar more than 9% this year and reach record highs. Investors have been taking profits after the surge, amid heightened demand for gold driven by fears over Trump’s tariff policies and their global economic repercussions.
Looking ahead, market participants will be watching Friday’s inflation data for clues about the Federal Reserve’s next moves. Treasury investors expect the central bank may shift its focus from inflation to economic growth. As of 11:26 a.m. in New York, spot gold was down 1.5% to $2,873.10 an ounce, while silver, platinum, and palladium also slipped.
