Market Reacts to US-China Trade Tensions

In a significant market movement, precious metals witnessed an uptick this Wednesday, with gold prices climbing over 1%. This surge comes in the wake of the United States President Donald Trump's announcement of imposing hefty 104% tariffs on Chinese goods, a move that has escalated trade tensions between the two economic giants.

China's Stance and Market Stabilization Efforts

Beijing has firmly opposed these measures, vowing to combat Trump's tariff policies "to the end." In response to the market's volatility, Chinese state-owned enterprises are ramping up investments in an effort to stabilize the financial markets. Meanwhile, Trump has accused China of engaging in currency manipulation to mitigate the impact of these tariffs but remains optimistic about reaching a resolution.

Precious Metals Performance

At 7:30 am CET, gold was trading at $3,015.73 per ounce, marking a 1.08% increase. Silver prices remained stable at $29.82 per ounce. Shortly after, platinum saw a 0.14% rise to $923.20 per ounce, and palladium increased by 0.30% to $896.82 per ounce.