Gold Rally Gains Steam as Trade Tensions Between U.S. and China Dampen Market Relief
Gold prices surged in Asian markets on Thursday, edging close to historic highs as persistent trade friction between the U.S. and China spurred investor demand for safe-haven assets—even as President Donald Trump announced a temporary tariff suspension for most global partners.
As of 02:05 ET (06:05 GMT), Spot Gold advanced 1.6% to $3,123.58 per ounce, while June Gold Futures climbed 1.9% to $3,137.61 per ounce.
The precious metal had previously hit an all-time peak of $3,168 per ounce on April 3 following initial tariff announcements. However, broader financial market volatility prompted some investors to cash out of gold to cover losses in other asset classes, leading to recent pullbacks.
Gold Gains Renewed Momentum as Trade Risks Resurface
Wednesday marked a renewed push for gold after new U.S. tariffs officially came into effect. While Trump swiftly announced a 90-day deferral for most countries, his decision to hike tariffs on Chinese goods to 125% reignited fears of prolonged trade hostilities.
In a tit-for-tat response, China implemented steep 84% tariffs on U.S. imports starting Thursday.
These mixed policy signals have fueled investor anxiety, with markets grappling with the prospect of a deeper and longer-lasting standoff between the two economic powerhouses. Uncertainty over global trade dynamics continues to boost demand for gold as a traditional hedge.
Adding to gold’s momentum, the U.S. Dollar Index slipped 0.2%, hovering near a six-month low in Asian trade, making the metal more attractive to international buyers.
Other Precious and Industrial Metals React
Silver Futures spiked 2.4% to $31.155 per ounce, while Platinum Futures edged up 0.6% to $940.20 per ounce.
Copper markets also rallied on Friday in response to Trump’s tariff reprieve. However, analysts remained cautious given the sharp increase in tariffs targeting China—a major consumer of industrial metals.
“There’s still considerable ambiguity as Chinese-bound metals face a 125% tariff,” analysts at ING noted. “Nonetheless, expectations are rising that Beijing could counter with enhanced stimulus efforts, potentially cushioning the blow to industrial metals like copper.”
On the London Metal Exchange, Benchmark Copper Futures surged 4.7% to $9,037.15 per ton. In contrast, May Copper Futures declined 0.8% to $4.4295 per pound.