Gold Prices Rebound as U.S.-China Tensions and Russia-Ukraine Conflict Fuel Safe Haven Demand

Gold prices surged in Asian trading Thursday, bouncing back from earlier losses as uncertainty over the U.S.-China trade war and renewed Russia-Ukraine tensions boosted demand for safe haven assets.

Spot gold rose 1.3% to $3,331.34 an ounce, while June futures gained 1.4% to $3,341.25/oz by 01:37 ET. Despite dipping earlier this week after President Donald Trump hinted at reducing tariffs on China, gold remains near its record high of $3,500/oz. JP Morgan predicts prices could reach $4,000/oz by 2026, supported by persistent economic and geopolitical risks.

Trump’s remarks on possibly cutting steep 145% tariffs on Chinese imports sparked brief optimism, but lack of clarity and skeptical follow-up statements from U.S. officials tempered the market’s reaction. Treasury Secretary Scott Bessent cautioned that any trade deal with Beijing would be slow-moving, and likely require the U.S. to initiate tariff cuts first. China, meanwhile, has responded with 125% tariffs and shown no sign of backing down.

Amid this uncertainty, investors reduced exposure to the dollar and Treasuries, pivoting toward gold and the Japanese yen as primary safe haven assets. The dollar’s recent weakness has also lent support to precious metals broadly.

Geopolitical risks further intensified after Russia launched a drone and missile assault on Kyiv, even as U.S.-mediated ceasefire talks with Ukraine faltered. Trump criticized Ukrainian President Volodymyr Zelenskiy over Crimea, and several top U.S. officials exited ceasefire negotiations in London, deepening investor anxiety.

Elsewhere, platinum futures edged up 0.1% to $979.75/oz, while silver slipped 0.4% to $33.39/oz. In base metals, London copper dipped 0.1% to $9,371.35 per ton, and U.S. copper held steady at $4.8348 per pound.