Gold Surges as Trade Tensions Fuel Safe-Haven Demand

Gold prices climbed over 2.7% on Thursday, building on Wednesday’s sharp 3% rally, as investors sought refuge amid a weakening dollar and intensifying U.S.-China trade friction. 

U.S. gold futures jumped to $3,161.

The precious metal’s appeal strengthened as the dollar index dropped more than 1%, enhancing gold’s affordability for foreign currency holders.

The surge followed President Trump’s Wednesday announcement, which eased tariffs on many nations to a 10% baseline but sharply increased duties on Chinese imports to 125% from 104%.

Nikos Tzabouras, Senior Market Analyst at Tradu.com, noted, “Gold is reclaiming its safe-haven status, poised for new record highs.”

However, he cautioned that potential trade deals with other partners could cap gains, while a stronger dollar—driven by reduced expectations of Federal Reserve rate cuts—might also pressure the metal.

The escalating trade war continues to ripple across markets, with uncertainty amplifying gold’s allure.

Meanwhile, oil prices remain under scrutiny as supply and demand dynamics evolve in this volatile landscape.