Precious Metals Gain as Trade Tensions Escalate

On Wednesday, the price of precious metals saw significant gains, with gold leading the charge by adding over 3%. This surge is largely attributed to the growing demand for safe-haven assets, as fears of a full-blown trade war between the world's leading economic powers stoke concerns over a potential global recession.

China and the US Exchange Heavier Tariffs

China has announced plans to increase its retaliatory duties on American imports to a staggering 84%, up from the previous 34%. This move comes in response to the US administration's decision to expand tariffs against Chinese products to 104%. The escalating trade dispute has sent shockwaves through global markets, prompting investors to seek refuge in gold and other precious metals.

EU Joins the Fray with Retaliatory Measures

Adding to the tension, EU officials have confirmed their intention to implement retaliatory tariffs on €21 billion worth of American products, effective April 15. This development further complicates the international trade landscape, contributing to the volatility that has benefited precious metals.

Market Snapshot: Precious Metals Prices

At 11:21 am ET, gold was up 3.33%, trading at $3,081. Shortly after, silver added 1.74%, selling at $30.33. Platinum and palladium also saw gains, with platinum up 0.11% at $922.63 and palladium increasing by 0.24% to $896.20.