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Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
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Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
The U.S. dollar rebounded in volatile Asian trading on Tuesday after President Donald Trump suggested potential tariffs on Canada and Mexico, though specifics were scarce. Trump hinted at a 25% tariff announcement on February 1, surprising markets that had anticipated a more measured approach.
Trade-exposed currencies reacted sharply, with the Canadian dollar and Mexican peso falling. The dollar rose 1.2% to 1.4475 against the Canadian dollar and gained 1.3% on the peso. The dollar index climbed 0.6% to 108.65 after a 1.2% drop on Monday, its steepest daily decline since late 2023.
The euro slipped to $1.0364 from an earlier high of $1.0434, as the European Union, with its substantial trade surplus with the U.S., is seen as a potential target for tariffs. The dollar also rebounded 0.3% against the Japanese yen to 156.06, recovering from a five-week low of 154.90. The yen had strengthened last week on expectations of a Bank of Japan rate hike this Friday.
Market strategists were caught off guard by Trump’s aggressive tariff proposal. "A 25% tariff as a starting point is unexpected," said Shoki Omori, chief global desk strategist at Mizuho Securities. "Markets had anticipated an incremental approach, possibly beginning with China."
The dollar also gained 0.3% on the Chinese yuan to 7.2847. Trump has previously threatened China with tariffs as high as 60%, heightening concerns over trade tensions.
Currency markets are now closely monitoring developments, especially ahead of the Bank of Japan’s policy meeting and potential updates on U.S. trade policy.
