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Gold prices surged to an all-time high in Asian trading on Friday, extending a powerful rally as investors sought safety amid escalating trade tensions between the United States and China. A weaker dollar, falling demand for U.S.-linked assets, and rising volatility across financial markets continued to fuel the yellow metal’s gains.
As of 00:37 ET (04:37 GMT):
- Spot gold jumped over 1% to a record high of $3,220.20 per ounce
- Gold futures (June delivery) surged 1.7% to $3,231.69 per ounce
The rally capped a stellar week for gold, which outpaced all other major metals and reaffirmed its status as a go-to safe haven during periods of global uncertainty.
Gold Surges as Trade War Escalates, Dollar Slips
The main catalyst behind gold’s surge has been the escalating tariff battle between Washington and Beijing. Earlier this week:
- President Donald Trump announced U.S. tariffs on Chinese goods had reached 145%
- China retaliated with 84% tariffs on U.S. imports
While Trump extended a 90-day delay for new reciprocal tariffs on most countries, his administration’s hardline stance on China fueled investor fears of a drawn-out and damaging trade war. Despite suggesting he’s waiting for China to initiate talks, Beijing has shown no willingness to de-escalate.
These developments triggered a flight from risk assets and U.S.-tied instruments, such as the dollar and Treasury notes, and fueled strong inflows into gold and the Japanese yen.
A softer-than-expected U.S. consumer inflation report this week also weakened the dollar further, bolstering expectations of earlier Federal Reserve interest rate cuts—another supportive factor for non-yielding gold.
Precious Metals Follow Gold Higher
Gold’s momentum lifted other precious metals:
- Silver futures rose 1.6% to $31.245 per ounce
- Platinum futures added 0.5% to $935.75 per ounce
While silver and platinum have lagged behind gold in recent weeks, they are now benefiting from broad-based weakness in the dollar and renewed demand for hard assets.
Copper Rises Modestly, But Trade War Limits Upside
Copper prices edged higher Friday, helped by dollar weakness, but concerns about slowing global growth and falling industrial activity kept gains in check.
- LME copper futures rose 0.6% to $8,959.80 per ton
- U.S. copper futures fell 0.6% to $4.3675 per pound
Copper markets have struggled under the weight of demand concerns, particularly from China, the world’s top copper importer. The industrial metal posted a modest rebound this week, but remains well below prior levels after a 10.5% plunge last week in LME contracts and a 14% drop in U.S. copper futures.
“With a full-blown U.S.-China trade war now underway and no clear path to resolution, traders fear continued pressure on global growth and commodity demand,” analysts noted.
Outlook: Gold Eyes Further Highs Amid Economic Uncertainty
With no signs of a resolution to the U.S.-China conflict and financial markets still digesting the implications of steep tariffs, safe-haven flows are expected to remain strong. If the Federal Reserve signals a dovish shift in response to slowing inflation, gold could see further upside, potentially breaking new records in the near term.
