Gold Breaks Records as Markets React to US-China Tariffs and Dollar Slump
Gold surged nearly 3% to a record high, driven by a weakening U.S. dollar and intensifying trade tensions between the U.S. and China.
Spot gold hit $3,171.49 before settling slightly lower at $3,168.26, while U.S. gold futures climbed to $3,185.50.
The dollar index dropped over 1%, making gold more appealing to foreign buyers. President Trump announced higher tariffs on Chinese goods—up to 125%—while easing duties on other nations.
This escalating trade conflict, paired with surprise data showing a dip in U.S. consumer prices, spurred investor demand for gold as a safe-haven asset.
Despite gold’s rally, analysts warn of potential headwinds.
Any progress in trade negotiations could weigh on prices, while a stronger dollar—possibly supported by fewer expected Fed rate cuts—might limit further gains.
Still, ongoing central bank purchases, inflows into gold ETFs, and persistent economic uncertainty provide strong support.
Other precious metals saw mixed movements: silver held steady at $31.02 an ounce, platinum inched up to $940.24, and palladium dropped 1.5% to $918.
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