Gold Surges Amid Trade War Fears

In a dramatic response to escalating trade tensions between the US and China, gold prices experienced a significant surge, climbing 2% on Thursday. This movement underscores the metal's status as a preferred safe-haven asset during times of economic uncertainty.

Trade Tariffs Take Center Stage

The spike in gold prices comes on the heels of recent announcements from both nations. US President Donald Trump escalated the conflict by imposing a 125% tariff on Chinese imports, a direct retaliation to China's earlier decision to increase levies on American goods to 84%. These developments have cast a shadow over recent positive economic indicators, including a temporary reduction in global duties by the US to 10% for a three-month period aimed at easing trade negotiations.

Market Reactions

At 10:15 am ET, gold was trading at $3,144.37 per ounce, marking a 2.01% increase. Meanwhile, silver saw a slight decline of 0.22%, trading at $30.97 per ounce. Platinum and palladium also experienced modest gains, with platinum up by 0.30% to $938.07 and palladium increasing by 0.19% to $904.75 per ounce.