Gold Drops, Silver Gains on Tariff Uncertainty

Gold retreats while silver rises as new US tariffs fuel market uncertainty. Early trading on Feb. 24 saw gold fall US$45.20 to US$5,181.00 after hitting a three-week high, while silver gained US$0.982 to US$87.55. The moves follow the implementation of a 10% global US tariff, with a planned increase to 15%, and renewed concerns over trade disputes, EU objections, and potential new investigations under Sections 232 and 301 of US trade law.

This week, the White House implemented a 10% global tariff, following  a Supreme Court decision striking down earlier sweeping tariffs. The European Union said the new measures breach the EU-US trade agreement, as cumulative levies on some goods, including cheese and agricultural products, could exceed the 15% ceiling agreed upon by both sides.

According to Bloomberg, the European Commission told lawmakers that the global tariff would be added to existing duties. Bernd Lange, Chair, European Parliament’s trade committee, said the new cumulative rate would push some goods above the permitted threshold.

The US administration is also preparing new trade investigations. Under Section 232 of the Trade Expansion Act of 1962, the United States plans to examine the impact of imports on batteries and industrial chemicals, potentially leading to tariffs on national security grounds. 

The US Trade Representative said the president will also initiate probes under Section 301 of the Trade Act of 1974 targeting discriminatory trade practices, including industrial excess capacity and digital services taxes.

At US ports, cargo flows may shift. Port of Los Angeles’ Executive Director, Eugene Seroka, said the Supreme Court ruling could increase volumes if effective tariff rates decline. “If that effective tariff rate for some companies and importers is lower, we may see some cargo really shoot through the system pretty quickly,” he said in a Bloomberg Television interview. He noted exports have weakened, citing an 80% drop in soybean shipments and export declines in nine of the last 13 months.

In financial markets, JPMorgan Chase CEO, Jamie Dimon, warned of risk-taking reminiscent of the period before the 2008 financial crisis. “I see a couple people doing some dumb things. They are just doing dumb things to create NII,” Dimon said, adding that the credit cycle could eventually deteriorate.

In China, the People’s Bank of China held its one-year loan prime rate at 3.0% and its five-year rate at 3.5% for a ninth consecutive month, balancing growth support with financial stability concerns. The US dollar index was firmer on Feb. 24, crude oil traded near US$66.50/b, and the yield on the 10-year US Treasury note stood at 4.037%.

Market Performance: From Historic Gains to Robust 2026 Levels

Gold and silver delivered standout performance in 2025. Over the course of that year, both metals climbed sharply, with silver’s gains significantly outpacing many risk assets and gold posting its strongest annual advance in decades amid geopolitical tensions, safe-haven demand, and strategic portfolio positioning.

Prices that entered 2026 near multi-year highs reflect not only the carryover of 2025 momentum but also ongoing macro drivers that keep precious metals in strategic view. Gold’s elevated trading range and silver’s continued volatility have underscored the metals’ dual roles as both risk-off assets and industrially relevant commodities.