AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

6/2/2025: Gold surges on tariff tension

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold surged 2.5% to close above $3,370 as renewed tariff concerns and geopolitical turmoil undercut the dollar, boosting alternative stores of value. It was bullion's highest finish in three weeks. Silver jumped 5.2% to end at $34.56 an ounce.

President Trump threatened on Friday to double tariffs on steel and aluminum to 50% while accusing China of violating an agreement on shipping critical minerals. China dismissed the charges as groundless and vowed to protect its interests.

Meanwhile, Israel increased its bombardment of Gaza, and Ukraine struck deep into Russia with drone attacks on the eve of peace talks, heightening geopolitical tensions and fueling demand for safe-haven assets.

The dollar dropped 0.7% against major rivals led by the yen and Swiss franc, lifting gold and other commodities by making them less expensive in other currencies.

US economic data also supported bullion. The ISM reported manufacturing fell further into contraction in May, with exports hitting a five-year low while imports plunged to a 16-year low.

Optimism about rate cuts from the Fed increased after a pair of prominent Fed officials said inflation from tariffs is likely to be short-lived. Fed Governor Christopher Waller suggested multiple cuts could come this year if data continued to weaken. Chicago Fed President Austan Goolsbee said short-term rates can be lowered once the "dirt in the air" from tariffs clears up later this year.

Platinum and palladium rose 0.6% and 2.8%, respectively.

At the New York spot close: gold gained %=$81.70 to $3,370.60; silver surged $2.47 to $34.56; platinum picked up $6.50 to $1,063.20; and palladium advanced $27.30 to $988.60 an ounce.