Gold Prices Climb as Trade Tensions Escalate

The precious metals market witnessed a significant uptick on Wednesday, with gold leading the charge. Investors flocked to safe-haven assets as the specter of a full-blown trade war between the world's leading economies stoked fears of a global recession.

China and EU Strike Back with Tariffs

China announced a drastic increase in retaliatory tariffs on U.S. imports, escalating the ongoing trade dispute. This move came in response to the U.S. administration's decision to impose higher tariffs on Chinese goods. Meanwhile, the European Union is set to implement its own set of retaliatory measures, targeting American products.

Market Reaction

By late morning, gold prices had soared by 3.33%, reaching $3,081. Silver and other precious metals also saw gains, reflecting the market's nervousness and the growing appeal of tangible assets in times of uncertainty.