Gold price hits new high, Wall Street plunges due to Trump's tax

World gold prices exceeded 2,820 USD, while US stock indexes fell when the White House confirmed imposing tariffs on Mexico, Canada, and China from February 1.

Closing trading session January 31, gold price Global spot prices rose nearly $1 to $2,796 an ounce. During the session, prices briefly hit a new record high of $2,823.

Investors rushed to buy safe-haven assets when White House Press Secretary Karoline Leavitt confirmed on January 31 that US President Donald Trump would impose a 25% tariff on goods from Mexico and Canada and a 10% tariff on goods from China starting February 1. The reason is that these countries have not prevented the smuggling of fentanyl into the US.

Import tariffs could increase inflationary pressure in the US and drag down global growth. "There's a lot of uncertainty right now. We're waiting to see what the tariffs will do," said Bob Haberkorn, senior market strategist at RJO Futures.

Gold is a popular tool in times of economic and political turmoil. Last month, the precious metal recorded a 7% increase - the best since March 2024. Last year, the precious metal also set consecutive records.

Another reason for the rise in gold prices is the conflicting signals regarding interest rates from the US Federal Reserve (Fed) and Mr. Trump. "Mr. Trump wants to lower interest rates, while the Fed wants to keep them the same," Haberkorn said. Earlier this week, Fed Chairman Jerome Powell affirmed that there was no rush to cut interest rates.

The US stock market also declined on January 31st due to news that President Trump was imposing import tariffs. The DJIA lost more than 300 points, or 0.7%. The S&P 500 and Nasdaq Composite fell by 0.5% and 0.3%, respectively. Prior to this, all three indices had been rising.

Shares of companies with significant operations in Mexico, Canada and China all fell. Beer maker Constellation Brands (which distributes the Corona brand in the US) fell nearly 2%. Mexican restaurant chain Chipotle lost 1%.

"This is just the initial reaction to the tariff information. We don't have more details yet. For example, whether the tariffs are temporary or permanent, or what the reactions of other countries will be. We believe it's best to wait until the policy is actually implemented," said Tom Hainlin, investment strategist at US Bank Asset Management Group.

Source: https://baoquangninh.vn/gia-vang-lap-dinh-wall-street-lao-doc-vi-thue-cua-ong-trump-3341860.html