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 World spot prices rose nearly $1 to $2,796 an ounce. During the session, prices hit a new record at $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.

Tariffs could add to inflationary pressures 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 on interest rates from the US Federal Reserve (Fed) and Mr. Trump. "Mr. Trump wants to cut interest rates, while the Fed wants to keep them the same," Haberkorn said. Earlier this week, Fed Chairman Jerome Powell affirmed that he was in no rush to cut interest rates.

The US stock market also fell on January 31 due to the news of Mr. Trump imposing import tariffs. The DJIA index lost more than 300 points, equivalent to 0.7%. The S&P 500 and Nasdaq Composite index fell 0.5% and 0.3%, respectively. Previously, all three indexes were on the rise.

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 an initial reaction to the tariff announcement. We don't have any more details about it, such as whether the tariffs are temporary or permanent, or how countries will react. We think we should 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