09:31 AM EST, 01/21/2025 (MT Newswires) -- Gold prices weakened early on Tuesday even as the dollar was sharply lower as Donald Trump deferred a promise to impose punishing tariffs on Canada and Mexico to Feb.1,

Gold for February delivery was last seen down US$8.30 to US$2,740.40 per ounce.

In his first day in office, Trump failed to follow through on promises to immediately launch trade wars on China, Canada and Mexico by imposing stiff tariffs on imports from the three companies. While he directed federal agencies only to examine the trade practices of the three countries, he later told reporters 25% tariffs on Canadian and Mexican products will be put in place starting next month.

The dollar was sharply lower early, usually a bullish note for commodities priced in the currency. The ICE dollar index was last seen down 0.86 points to 108.49.

Treasury yields also weakened, with the yield on the U.S. two-year note last seen down 3.2 basis points to 4.259%, while the 10-year note was paying 4.567%, down 6.3 points.