**********On Tuesday (February 4th) morning trading in the Asian market, spot gold fluctuated narrowly and is currently trading around $2815.74 per ounce. The gold price fell first and then rose on Monday, as US President Trump announced tariffs on Canada, China, and Mexico, exacerbating market concerns about inflation affecting economic growth. The US dollar index surged more than 1% on Monday, causing the gold price to fall to around 2772, but it was soon supported by safe haven and bargain hunting buying.

In addition, as Trump announced the postponement of tariffs on Canada and Mexico, the US dollar index gave up its gains, providing another opportunity for gold prices to rise. On Monday, gold prices hit a high of $2830.39 per ounce, closing at $1814.38 per ounce.

David Meger, head of metal trading at High Ridge Futures, said that although a stronger US dollar usually has a restraining effect on the gold market, gold prices have been rising due to the uncertainty of Trump's tariffs driving safe haven demand.

Starting from Tuesday, Trump has imposed a 25% tariff on imported goods from Canada and Mexico, and a 10% tariff on Chinese goods, intensifying concerns that a trade war could lead to a slowdown in global economic growth and trigger rising inflation.

Canada and Mexico announced retaliatory measures, while China stated that it will question tariffs at the World Trade Organization (WTO) and take countermeasures, but did not disclose details.

However, Trump announced on Monday that tariffs on Mexico will be suspended for one month.

On the afternoon of February 3rd local time, early this morning (February 4th) Beijing time, Canadian Prime Minister Trudeau announced after speaking with US President Trump that the United States will suspend tariffs on Canada for at least 30 days. US President Trump confirmed the postponement of tariffs on Canada, stating that the tariffs announced last Saturday will be suspended for 30 days to see if a final economic agreement with Canada can be reached.

At the same time, JPMorgan Chase pointed out that the spread of bear markets in the stock market may drag down gold in the short term, but destructive tariffs continue to fuel the medium-term bull market for gold.

The US dollar index fell 0.1% on Monday, closing at 108.42; In the morning session, it reached a three week high of 109.88.

Marc Chandler, Chief Market Strategist at Bannockburn Global Forex, said: 'This delay in Mexico demonstrates that tariffs are just a trading tool.'.

Mark McCormick, Head of Foreign Exchange and Emerging Markets Strategy at TD Securities, said, "This move by the US seems to be rebuilding its hegemonic position and forcing the world to pay for its public goods, which is not a routine government operation

After the announcement of the tariff news, the market lowered its demand forFederal ReserveThe expectation of interest rate cuts, futures prices show that the likelihood of two interest rate cuts this year is only 50%.

Some analysts say that once tariffs are implemented, the economies of Canada and Mexico will face the risk of recession, and if tariffs are implemented, the eurozone economy will face further stagnation.

Trump said last weekend that tariffs would be imposed on the European Union, but did not specify a specific time.

EU leaders said at an informal summit in Brussels on Monday that if the United States imposes tariffs, Europe will be prepared to retaliate, but also called for rationality and negotiation.

The market is trying to figure out what customs duties will mean: will tariffs stimulate inflation, lead to slower economic growth, and hinder the Federal Reserve from cutting interest rates? "Said Kim Rupert, Managing Director of Global Fixed Income Analysis at Action Economics. People don't know how to price so much uncertainty

US President Trump said that although the UK has "crossed the line" in trade, he believes that the UK may be able to avoid tariffs. When it comes to trade imbalances, he added, "I think this can be resolved

When asked if the UK would face tariffs, Trump told reporters on Sunday (February 2), "We will see how things develop. The UK may face tariffs, but the EU will definitely face tariffs, and I can tell you that. The UK has gone too far. We'll wait and see... but the EU has indeed gone too far. The UK has gone too far, but I think this can be solved. But the EU's actions are simply atrocities

In terms of economic data, the US manufacturing industry saw its first growth in over two years in January, but the recovery may be short-lived. Trump's imposition of tariffs could further push up material prices and disrupt supply chains. According to a survey released by the Institute for Supply Management (ISM) in the United States, the Purchasing Managers' Index (PMI) for the manufacturing sector rose from 49.2 in December to 50.9 in January, the highest since September 2022 and the first PMI to rise above 50 since October 2022, indicating growth in the manufacturing industry.

Several officials from the Federal Reserve have warned that the large-scale tariffs currently implemented by the Trump administration pose inflation risks, but they have not specified how this will affect their views on monetary policy in a clearly uncertain environment.

The comprehensive tariffs announced over the weekend are expected to have an impact on prices, "said Boston Fed President Collins. She added, "Imposing comprehensive tariffs will not only lead to an increase in the final commodity prices, but also result in an increase in the prices of some intermediate commodities

Atlanta Fed President Bostic has warned that his business contacts are planning to pass on any cost increases related to tariffs. Bostic also stated that the high uncertainty of tariffs and other policies makes it difficult for the Federal Reserve to predict how the economy will develop, so it is appropriate to adopt a cautious attitude towards further interest rate cuts.

Chicago Fed President Goolsby said that policy uncertainty, especially tariffs that could push up prices, provides a reason for the Fed to slow down its pace of interest rate cuts.

This trading day will also release the monthly factory order rate and JOLTs job vacancy data for December in the United States, which investors need to pay attention to. In addition, continue to follow Trump's updates.