Gold Prices Surge Amid Trade Tensions

Gold prices experienced a significant surge, climbing 2% on Thursday. This increase comes as investors increasingly turn to safe-haven assets amidst escalating trade tensions between the US and China.

Trade Tariffs Escalate

US President Donald Trump announced an immediate hike in Chinese import tariffs to 125%, a move that follows China's decision to increase levies on American products to 84%. These reciprocal escalations have cast a shadow over recent positive economic data, including a reduction in global duties by the US to 10% for a three-month period aimed at facilitating trade negotiations.

Market Reactions

By 10:15 am ET, gold had climbed by 2.01%, reaching $3,144.37 per ounce. In contrast, silver saw a slight decline of 0.22%, trading at $30.97 per ounce. Platinum and palladium also experienced gains, with platinum rising by 0.30% to $938.07 and palladium advancing by 0.19% to $904.75 per ounce.