Gold prices soared to new all-time highs during Wednesday’s Asian session, driven by escalating geopolitical tensions and renewed investor demand for safe-haven assets. Spot gold jumped 1.7% to $3,283.63 an ounce, while June futures climbed as high as $3,299.52/oz—a record peak.
The rally was fueled in part by continued weakness in the U.S. dollar, as investors pulled capital from U.S. Treasuries amid growing fears over Washington’s trade policy under President Donald Trump.
The uncertainty came to a head following a 145% cumulative tariff imposed by the U.S. on Chinese imports, prompting China to retaliate with a 125% tariff of its own. These moves reignited trade war concerns, driving investors toward traditional safe havens such as gold and the Japanese yen.
Nvidia’s $5.5B Warning Fuels Sell-Off
Adding to the anxiety was a surprise announcement from Nvidia Corporation (NASDAQ: NVDA), which revealed a projected $5.5 billion impairment due to tighter U.S. export restrictions on semiconductors. The restrictions could significantly curtail Nvidia’s ability to sell chips to China, one of its key markets.
This news sent U.S. tech futures tumbling in after-hours trading, with ripple effects felt across major Asian tech indices. The development also deepened fears of further retaliatory measures from Beijing and raised broader concerns over the global tech supply chain.
Highlights:
- Nvidia warned of a $5.5 billion Q1 impairment
- U.S. chip exports to China face new restrictions
- Asian tech stocks saw sharp declines in response
Analysts say the combined pressure of trade policy shifts and tech restrictions has increased market aversion to risk-heavy assets, further boosting demand for gold.
Industrial Metals See Mixed Moves
While gold led gains among precious metals, others posted mixed performances:
- Silver futures rose 0.5% to $32.455/oz
- Platinum futures slipped 0.1% to $968.95/oz
Meanwhile, copper—the bellwether for industrial demand—retreated despite China reporting stronger-than-expected Q1 GDP growth. Market sentiment was weighed down by expectations that future Chinese growth could stall due to sustained trade tensions.
- London Metal Exchange (LME) copper fell 0.6% to $9,108.85/ton
- U.S. copper futures dipped 0.5% to $4.5920/lb
With both trade and tech tensions mounting, analysts believe volatility in both industrial and precious metals could persist in the coming weeks. Investors remain laser-focused on policy developments in Washington and Beijing that could further shift market dynamics.