Gold prices surged in Asian markets Thursday, as intensifying U.S.-China trade tensions reignited safe-haven demand. Despite President Donald Trump announcing a 90-day tariff pause for most nations, a sharp escalation in tariffs targeting China triggered renewed investor anxiety.
Spot gold rose 1.6% to $3,123.58 per ounce as of 06:05 GMT, while June Gold Futures climbed 1.9% to $3,137.61 per ounce. The rally places gold within striking distance of its April 3 record high of $3,168.
The gains followed the U.S. decision to raise tariffs on Chinese goods to 125%, up from the 104% announced earlier in the week. In retaliation, Beijing implemented an 84% levy on U.S. imports, escalating fears of a prolonged trade conflict between the world’s two largest economies.
Meanwhile, the U.S. Dollar Index dipped 0.2%, hovering near a six-month low—an added boost for dollar-denominated gold as it becomes more attractive to foreign investors.
Investor Demand Fuels Precious Metal Gains
Markets are shifting toward defensive assets as the global economic outlook clouds. Investors are increasingly hedging against volatility by turning to gold and other precious metals.
- Gold Futures: Up 1.9% to $3,137.61
- Silver Futures: Rose 2.4% to $31.16 per ounce
- Platinum Futures: Gained 0.6% to $940.20 per ounce
The rebound in gold came after recent declines caused by profit-taking and margin calls during a broader market sell-off. However, the underlying geopolitical risk remains, keeping gold on a bullish trajectory.
“The uncertainty around global trade policy continues to drive interest in gold,” said analysts at IG Markets. “With both the U.S. and China digging in, risk aversion is climbing.”
Copper Spikes Despite Long-Term Uncertainty
Copper markets also reacted sharply to tariff developments. While Trump’s tariff pause provided a brief boost, investors remain cautious over the 125% tariff hike on Chinese imports—especially since China is the world’s largest consumer of industrial metals.
Benchmark Copper Futures on the London Metal Exchange jumped 4.7% to $9,037.15 per ton. However, U.S. copper futures expiring in May slipped 0.8% to $4.4295 per pound, reflecting mixed sentiment in the global market.
Analysts at ING noted, “Expectations are building that Beijing could respond with new stimulus to counter trade headwinds, which may support industrial metal prices longer-term.”