Gold faces substantial loss on Thursday after President Trump triggers concerns on planned tariffs

LONDON (February 27) Gold’s price (XAU/USD) recovers a part of the big chunk of incurred losses on Thursday after unclear and even contradictory remarks on tariffs. The leg lower came after United States (US) President Donald Trump casted doubts and confusion during a cabinet meeting on Wednesday about what levies will be applied, when and to which countries.  

President Trump said “tariffs will go on, not all, but a lot of them” and added that levies on Canada and Mexico imports will go into effect on April 2. Reciprocal tariffs should be installed on April 2 too. The US President confirmed a 25% tariff would be imposed on Europe as well on autos and other things but he did not provide further details. 

Daily digest market movers: What if Trump speaks again?

• Overnight markets braced for Nvidia’s (NVDA) earnings. Nvidia's quarterly sales will be about $43 billion, slightly above analysts' estimates, but gross profit margins will be tighter than expected due to the rollout of a new chip design called Blackwell. The mixed outlook came in with bad timing as concerns about slowing spending on AI and the potential impacts of US tariffs could mean more headwinds for the company.
• The CME Fedwatch Tool projects a 33.0% chance that the interest rates will remain at the current range in June, with the rest showing a possible rate cut. 
• On the US data front, the second reading of the US Gross Domestic Product (GDP) for the fourth quarter is due at 13:30 GMT. Projections are that the GDP annualized will remain stable at 2.3%. The quarterly headline preliminary Personal Consumption Expenditures (PCE), which precedes the monthly PCE on Friday, is expected to continue stable  at 2.3% as well. The core PCE number should come in at 2.5%, also unchanged. 

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