Precious Metals Take a Hit as US and China Announce Tariff Reductions

In a significant turn of events, the prices of precious metals experienced a notable decline this Monday. Gold, in particular, saw a sharp decrease, falling deeper into the red as the United States and China reached a temporary agreement to lower tariffs against each other for a period of 90 days.

Details of the Tariff Adjustment

The agreement stipulates that Washington will reduce its duties on China from a staggering 145% down to 30%, while Beijing will lower its levies on US products from 125% to 10%. This mutual concession has sent ripples through the market, particularly affecting the precious metals sector.

Market Reaction

By 4:29 am ET, gold had plummeted by 3.15%, trading at $3,222.23 per ounce. Silver wasn't spared either, sliding 2.06% to $32.07 per ounce. Shortly after, at 4:30 am ET, platinum and palladium also saw declines, with platinum tumbling 1.29% to $987.73 per ounce and palladium losing 0.65%, selling at $962.82 per ounce.