Gold taps record high as US-China tensions overshadow Trump’s tariff relief
Investing.com-- Gold prices hit a record high on Thursday, as safe-haven demand remained firm amid escalating trade tensions with China despite President Donald Trump’s 90-day pause on reciprocal tariffs for most countries.
As of 4:30 PM ET, Spot Gold jumped 2.83% to $3,170.27 per ounce. Gold Futures expiring in June jumped 3.54% to $3,188.56 an ounce.
The yellow metal reached a prior record high on April 3, after tariffs were announced, but hefty losses in other financial markets led to investors selling gold to cover losses elsewhere, leading to recent declines.
Gold nears record high as US-Sino tensions escalate
Gold’s renewed momentum was sparked on Wednesday as new tariffs imposed by the U.S. officially took effect.
While Trump quickly followed with a 90-day pause for most trading partners, he simultaneously raised tariffs on Chinese imports to 145%, stoking fears of deeper trade disruptions.
Meanwhile, China’s elevated tariffs of 84% on U.S. imports took effect on Thursday.
The mixed signals have left investors wary of further escalation between the world’s two largest economies. Persistent uncertainty around trade policy continues to drive demand for gold, seen as a hedge against geopolitical and economic instability.
The US Dollar Index edged 1.8% lower, making gold cheaper for overseas buyers.
Among other precious metals, Silver Futures jumped 2.3% to $31.11 an ounce, while Platinum Futures gained 2.14% to $939.70 an ounce.
Copper surges on tariff pause; uncertainty persists
Copper Futures jumped 4.4% on Thursday as investors cheered Trump’s 90-day pause, although caution persisted on higher China tariffs.
“Clearly, though, there’s still plenty of uncertainty as tariffs against key metal consumer, China, have been raised to 125%,” ING analysts said in a note.
“However, the prospect of a prolonged trade war has also raised expectations for Beijing to unveil more aggressive stimulus measures. This could cap the downside to copper and other industrial metals,” they added.
(Ayushman Ojha contributed to this report)