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Gold prices jumped in Asian trading Thursday, rebounding from recent losses as safe-haven appetite strengthened amid renewed tensions between the U.S. and China and a deadly escalation in the Russia-Ukraine conflict.
- Spot Gold surged 1.3% to $3,331.34/oz
- Gold Futures (June delivery) climbed 1.4% to $3,341.25/oz by 01:37 ET (05:37 GMT)
Trade War Doubts Reverse Gold’s Pullback
Gold had retreated earlier this week from record highs after President Donald Trump hinted at a possible reduction in the 145% tariffs on China. However, conflicting signals from other administration officials and Beijing’s continued resistance to negotiations dashed hopes of a near-term de-escalation.
- China retaliated with 125% tariffs, showing no signs of backing down
- Treasury Secretary Scott Bessent warned that any resolution could be a “slog” and suggested that the U.S. might have to cut tariffs first to bring China to the table
These mixed messages rekindled risk aversion, keeping traders cautious toward the dollar and U.S. Treasuries, and returning support to gold and other safe havens like the Japanese yen.
Russia-Ukraine Tensions Add to Risk Aversion
Tensions escalated further after Russia launched drone and missile strikes on Kyiv Wednesday, just as U.S.-brokered ceasefire talks with Ukraine wavered. The attack followed Trump’s criticism of Ukrainian President Volodymyr Zelenskiy and signals from VP JD Vance that the U.S. may withdraw from the negotiation process.
Several top-level American officials have reportedly dropped out of London-based peace discussions, adding another layer of geopolitical uncertainty fueling gold’s appeal.
Outlook: Gold Near Record High, JPMorgan Sees $4,000 by 2026
Spot gold remains in striking distance of its recent $3,500/oz all-time high, with JP Morgan forecasting a rise to $4,000/oz by Q2 2026, citing persistent geopolitical risk, central bank buying, and growing fears of a global economic slowdown tied to protectionist U.S. policies.
Other Precious and Industrial Metals Mixed
- Platinum Futures: +0.1% to $979.75/oz
- Silver Futures: –0.4% to $33.390/oz
- Copper (LME): –0.1% to $9,371.35/ton
- U.S. Copper Futures: flat at $4.8348/lb
While industrial metals like copper remain supported by the weaker dollar, fears of slowing global trade are starting to weigh on demand expectations, especially as the U.S.-China trade war drags on.
Key Takeaway
Gold’s bounce underscores that market sentiment remains fragile, with safe-haven flows intensifying on every sign of political and economic instability. Despite temporary pullbacks, the yellow metal’s uptrend remains intact as long as uncertainty over trade, inflation, and war lingers.
