Gold Nears All-Time High Amid Soaring US-China Trade Tensions

Gold prices surged in Asian trading on Thursday, approaching record levels as escalating trade tensions between the U.S. and China boosted demand for safe-haven assets. Spot gold rose 1.6% to $3,123.58 per ounce by 02:05 ET (06:05 GMT), while June gold futures climbed 1.9% to $3,137.61 per ounce. The precious metal previously hit an all-time high of $3,168 on April 3 following tariff announcements but faced short-term declines as investors sold assets to cover losses in other markets.

The rally resumed Wednesday after new U.S. tariffs took effect, despite President Donald Trump announcing a 90-day pause for most countries. The pause, however, excluded China, where tariffs were hiked to 125%, intensifying fears of a deeper trade conflict. In response, China implemented retaliatory tariffs of 84% on U.S. goods starting Thursday. The conflicting signals have rattled markets, fueling further uncertainty and strengthening gold’s appeal as a hedge against geopolitical risk and economic volatility.

Weakness in the U.S. dollar also supported gold prices, with the U.S. Dollar Index slipping 0.2% and hovering near a six-month low, making gold more attractive to international buyers. Silver and platinum also gained, with silver futures jumping 2.4% to $31.155 per ounce and platinum edging up 0.6% to $940.20.

Copper prices reflected mixed sentiment. London copper futures surged 4.7% to $9,037.15 a ton on optimism over Trump’s tariff pause. However, May copper futures dipped 0.8% to $4.4295 per pound. Analysts noted that while elevated tariffs on China remain a concern, expectations of fresh stimulus from Beijing could help support industrial metal demand in the coming months.