Gold and U.S. equities experienced significant gains today after President Donald Trump announced a temporary suspension of reciprocal tariffs that were scheduled to take effect at midnight yesterday. The precious metal jumped more than 3% as markets responded positively to the unexpected policy shift.
"I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately," President Trump stated in his announcement.
Treasury Secretary Scott Bessent later clarified the details of the policy adjustment. According to Bessent, all countries except China would return to the 10% baseline tariff rate - significantly lower than the previously announced rates that had unsettled global markets. He also noted that sector-specific tariffs would remain unaffected by the pause.
The announcement triggered a dramatic market rebound following days of intense selling pressure that had depressed major asset classes and fostered bearish sentiment across U.S. equities, precious metals, and commodities markets.
Gold prices rallied substantially during New York trading hours, with the benchmark June futures contract gaining $101.50 (3.39%) to close at $3,099.80 per troy ounce after reaching an intraday high of $3,118.50. Today's impressive performance allowed gold to recover just over half of its recent losses. The precious metal had declined by $192 between April 3 and April 8, largely due to concerns over escalating trade tensions.
Supporting gold's positive momentum, the World Gold Council reported significant investor interest in the first quarter of 2025. Gold-backed exchange-traded funds (ETFs) recorded inflows of 226.5 metric tons, valued at approximately $21.1 billion—the largest quarterly inflow in three years.
U.S. equity markets experienced even more dramatic gains. The Dow Jones Industrial Average surged by 2,900 points, while the S&P 500 posted its largest single-day percentage gain since 2008, rising 9.52% to close at 5,456.90. The tech-heavy NASDAQ Composite outperformed both indices with an extraordinary 12.16% gain.
Today's market turnaround follows last week's announcement in which Trump outlined plans to fundamentally reshape the 75-year-old global trading system. The president had proposed implementing a new baseline 10% U.S. tariff on goods from all countries, with higher reciprocal rates for nations that his administration identified as maintaining significant barriers to U.S. imports.
Market analysts suggest that while the 90-day pause provides temporary relief, considerable uncertainty remains regarding the long-term direction of U.S. trade policy. Investors are closely monitoring negotiations that will take place during this suspension period, with particular attention to discussions with major trading partners and potential impacts on inflation, supply chains, and global economic growth.
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