Gold prices surged to all-time highs in early Friday trading, topping $3,231 per ounce as global investors scrambled for safe-haven assets. The spike follows escalating tensions between the U.S. and China, with both nations announcing sweeping tariffs that have rattled global markets.
Spot gold rose 1.1% to $3,220.20 per ounce in Asian trading, while June futures climbed 1.7% to $3,231.69. These gains cap a robust week for gold, which has outperformed all other major metals. The rally was fueled by growing demand from investors looking to shield their portfolios from geopolitical and economic uncertainty.
According to the World Gold Council, demand for gold surged 18% globally in Q1 2025, with ETFs seeing net inflows of $8.3 billion during the same period.
Tariff Crossfire Drives Investors to Bullion
Investor anxiety has intensified after the U.S. slapped 145% tariffs on a wide range of Chinese imports. China responded with retaliatory measures amounting to 84% in counter-tariffs. The trade dispute has led to a sharp decline in risk appetite, pushing capital out of equities and into safe-haven assets like gold and the Japanese yen.
President Joe Biden stated he’s open to negotiations, but Beijing has not reciprocated, further unsettling markets. The situation has also sparked a selloff in U.S. Treasurys and the dollar, especially after weaker-than-expected consumer inflation data pointed to a possible Federal Reserve rate cut in the near term.
Key Market Highlights:
- Spot gold: $3,220.20/oz (+1.1%)
- Gold futures (June): $3,231.69/oz (+1.7%)
- Global Q1 gold ETF inflows: $8.3 billion
- U.S. tariffs on China: 145%
- China counter-tariffs: 84%
Metals React as Dollar Weakens and Demand Shifts
The dollar’s recent softness gave a slight lift to other metals, though gold remains the week’s standout performer. Silver futures advanced 1.6% to $31.245 per ounce, while platinum edged up 0.5% to $935.75.
Copper prices, however, remained volatile. London Metal Exchange (LME) copper rose 0.6% to $8,959.80 per ton, rebounding from last week’s 10.5% drop. U.S. copper futures fell 0.6% to $4.3675 per pound, as concerns over industrial demand in China weighed heavily.
Commodity markets remain on edge amid fears that prolonged trade conflicts will slow global growth, curbing demand for materials tied to manufacturing and infrastructure. Oil, another economic bellwether, dropped to a four-year low earlier this week.
As tensions escalate, investors continue to recalibrate, with gold’s momentum showing no signs of slowing.