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Gold prices extended strong gains in Asian trading on Thursday, approaching their all-time high as investors continued to seek safe-haven assets amid deepening U.S.-China trade tensions, despite President Donald Trump’s temporary pause on reciprocal tariffs for most other countries.
As of 02:05 ET (06:05 GMT):
- Spot Gold rose 1.6% to $3,123.58 per ounce
- Gold Futures (June delivery) gained 1.9% to $3,137.61 per ounce
The yellow metal is now just shy of its record high of $3,168, hit on April 3, when initial U.S. tariffs were unveiled. While gold prices pulled back in recent days as investors sold holdings to cover broader market losses, momentum has returned strongly amid renewed uncertainty.
U.S.-China Tensions Drive Safe-Haven Demand
Gold’s latest rally was triggered by the official implementation of U.S. tariffs on Wednesday. Though President Trump announced a 90-day postponement of reciprocal tariffs for most trading partners, he increased duties on Chinese imports to 125%, signaling a more aggressive stance toward Beijing.
China’s retaliatory 84% tariffs on U.S. goods came into effect Thursday, further heightening fears of a prolonged trade conflict between the world’s two largest economies.
“The contradictory nature of Trump’s tariff policy—delaying for allies while doubling down on China—has amplified geopolitical uncertainty,” analysts noted. “Gold is benefitting as investors brace for further market volatility.”
Dollar Weakness Adds to Gold’s Momentum
The U.S. Dollar Index edged 0.2% lower, lingering near a six-month low, which boosted gold’s appeal by making it cheaper for non-dollar buyers. The combination of a softer dollar, rising geopolitical tensions, and market volatility continues to support gold’s upward trend.
Precious Metals: Silver and Platinum Also Rise
Other precious metals joined the rally:
- Silver Futures surged 2.4% to $31.155 per ounce
- Platinum Futures rose 0.6% to $940.20 per ounce
Silver, often seen as a hybrid precious and industrial metal, benefited from both safe-haven flows and speculative buying.
Copper Surges on Tariff Delay, But Uncertainty Remains
Copper prices jumped sharply as investors welcomed Trump’s 90-day tariff pause, which eased short-term pressure on global supply chains. However, sentiment remained cautious due to higher tariffs on China, the world’s largest copper consumer.
- LME Copper Futures jumped 4.7% to $9,037.15 per ton
- Copper Futures (May delivery) slipped 0.8% to $4.4295 per pound
Analysts warn that any further deterioration in U.S.-China relations could weigh on industrial demand, especially if Chinese economic activity slows as a result of escalating tariffs.
Outlook
With gold now within striking distance of a new record high, market focus will remain on any escalation in U.S.-China rhetoric, as well as policy signals from central banks, particularly the Federal Reserve. Continued global uncertainty is likely to keep safe-haven demand elevated, supporting precious metals in the near term.
