Gold prices jumped in Asian trading on Wednesday as investors sought safety following a sharp escalation in U.S.-China trade tensions. A weaker dollar further supported the precious metal.
Price Snapshot (as of 02:35 ET / 06:35 GMT)
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Spot Gold: rose 1.6% to $3,031.02 per ounce
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Gold Futures (June delivery): climbed 1.9% to $3,046.61 per ounce
Earlier this week, gold had briefly dipped below the $3,000 mark—its lowest since March 13—before rebounding.
U.S. Tariffs Push Gold Higher
Gold’s gains were driven by renewed safe-haven demand after the U.S. implemented steep trade tariffs:
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A 104% cumulative tariff was imposed on Chinese imports
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Additional tariffs included:
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20% on the European Union
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24% on Japan
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25% on South Korea
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32% on Taiwan
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46% on Vietnam
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The new measures were announced by President Donald Trump on Tuesday and took effect Wednesday.
China Responds, Markets Turn Risk-Off
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China’s Ministry of Commerce vowed to “fight to the end” if Washington continues its tariff actions
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The escalating standoff fueled risk aversion, pushing investors toward traditionally safer assets like gold
Dollar Drop Amplifies Bullion Rally
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The U.S. dollar fell to a six-month low, enhancing gold’s appeal to non-dollar buyers
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A weaker greenback typically makes commodities like gold cheaper and more attractive globally
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What’s Next
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Market attention is now on China’s potential countermeasures
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Traders are also watching for any hints from the Federal Reserve amid growing recession risks tied to prolonged trade disruption
