On April 9, 2025, U.S. President Trump announced via his social media platform, Truth Social, that he would suspend "reciprocal tariffs" on most countries and reduce tariffs to 10% within 90 days. This announcement triggered a strong market reaction, particularly affecting gold prices, which saw the largest single-day increase since 2020.
Trump stated that this move aims to provide more time for trade negotiations with these countries. Since the announcement of the new round of tariff policies last week, Trump noted that over 75 countries have contacted U.S. officials seeking negotiation opportunities. This sudden policy shift brought relief to Wall Street and the general public, instilling a degree of confidence in global markets.
Gold prices surged significantly in response to Trump's tariff adjustments. The spot gold price expanded rapidly, with intraday gains approaching 3.75%, reaching $3,086.84 per ounce, marking the largest intraday increase since 2020. Gold futures also performed strongly, with COMEX gold futures increasing by 3.67%, closing at $3,099.8 per ounce. Market investors flocked to gold and other safe-haven assets, driving the price higher.
Trump's tariff adjustments also spurred increases in other commodities. International oil prices rebounded significantly, with WTI crude oil futures rising by 5.25% and Brent crude futures by 4.73%. Meanwhile, silver prices also saw a substantial rise, with spot silver climbing by 4% to close at $30.9982 per ounce, and COMEX silver futures gaining 4.09%.
On the evening of the 9th, Trump posted that it was an "excellent time to buy," encouraging his supporters to remain calm, predicting that everything will be resolved smoothly. He emphasized that "America will be stronger and better than ever." This statement further fueled market optimism, particularly increasing demand for gold and other safe-haven assets.
This tariff adjustment, along with Trump's optimistic remarks, caused a strong reaction in the market. The sharp rise in gold prices indicates investors' sensitivity to future economic uncertainties, especially amid global trade tensions, highlighting gold's appeal as a safe-haven asset.
