In a significant upswing, gold prices have hit a record high, propelled by heightened demand for safe-haven assets amid renewed tensions between the United States and China.
On Wednesday, the price of the precious yellow metal surged to an unprecedented $2,849.05 per ounce following President Donald Trump’s decision to implement a 10% tariff on Chinese imports. Following the imposition, Beijing responded with more targeted retaliation, adding to the anxiety regarding potential repercussions for the global economic giants.
China’s reaction was more restrained than during Trump’s earlier presidency, when it responded with tariffs nearly matching those of the U.S. Nonetheless, investors are closely watching to determine whether revived tariffs might spark inflation and influence U.S. monetary policy.
Gold could also likely be further bolstered as Trump suggested that the U.S. should assume control over the Gaza Strip and lead efforts to rebuild the conflict-affected region during a press briefing alongside Israeli Prime Minister Benjamin Netanyahu.
After a U.S. jobs report hinted at a gradual labor market slowdown, the dollar index dipped, making gold more affordable for international buyers.
At 9:17 AM in Singapore, spot gold increased by 0.1% to reach $2,844.82 per ounce. Meanwhile, the Bloomberg Dollar Spot Index declined by 0.1%, following a 0.7% drop the previous day. In other metals, silver and palladium experienced decreases, whereas platinum saw a slight rise.
The anticipation of the trade conflict had already stirred volatility in precious metals markets. Prior to the tariff announcement, U.S. gold and silver prices had outstripped global norms, driving traders to expedite shipments to America in advance. This frenetic activity also drove up lease rates for gold and silver in London, affecting short-term lending returns for metal holders.
