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Donald Trump began his second term as U.S. President by issuing a series of executive orders. Despite previous declarations about imposing 25% tariffs on Canada and Mexico, he deferred tariff policy decisions to committees for review, signaling potential delays. Press leaks from the Oval Office then suggested February 1st as the new target date for implementation. However, it is widely believed that official global tariff announcements will be staggered, with most arriving over the first month following internal reviews.
Gold and Silver
The temporary reprieve in tariff policy caused tariff-sensitive assets, such as the U.S. Dollar, to weaken, benefiting gold and silver prices. Gold spot prices gained further support during the overnight Asian trading session, likely due to the U.S. Dollar’s decline. For now, gold and silver remain stable, with few new macroeconomic narratives driving price direction. With the current Middle East ceasefire and the release of hostages, markets are awaiting further developments on tariffs for clearer price signals.
Platinum Group Metals (PGMs)
During Trump’s first term, platinum rose 13%, palladium soared 205%, and rhodium surged 2,450%, followed by sharp corrections of 15%, 61%, and 79%, respectively. These movements were primarily driven by stricter global emissions standards, such as China VI regulations, and increased vehicle production, rather than Trump’s policies. At the time, the global electric vehicle (EV) market share remained below 6%.In his second-term opening remarks, Trump declared a national energy emergency, stating, “We will revoke the Electric Vehicle mandate,” as part of his long-promised “drill, baby, drill” agenda supporting U.S. fossil fuels. If enacted, this policy could significantly disrupt PGM market prices, as diminished EV demand in the U.S. may reduce the need for catalytic converters, a key driver of PGM demand.More By This Author:Gold Tariff D-Day Looming
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