Gold prices surged to a new record on Wednesday, with the price of one ounce reaching $3,318, driven by heightened concerns over the escalating trade conflict between the United States and China.
At 08:20 GMT, gold’s price stood at approximately $3,312.60 per ounce, maintaining its record-setting value. The precious metal rose more than 2.6% on Wednesday, reaching a new all-time high, as investors reacted to fears of further intensification of the trade dispute between the world’s two largest economies.
The surge in gold prices followed a series of aggressive moves in the ongoing trade conflict. On April 2, U.S. President Donald Trump announced new “reciprocal” tariffs on more than 180 countries, a move that sent shockwaves through global markets. China was the first nation to retaliate, implementing tariffs at the same rate. The two countries’ tariff hikes have created a trade showdown, with the U.S. raising its tariffs on Chinese goods to 145%, while China retaliated with a 125% increase on U.S. imports.
Although the U.S. administration delayed reciprocal tariffs on other countries for 90 days, those targeting China took effect immediately, further escalating tensions. The economic fallout from these actions has led to significant market instability, prompting investors to flock to gold as a safe haven.
In addition to the tariffs, the U.S. government also took action against China’s technology sector, with the recent ban on Nvidia’s H20 chips exports to China further complicating relations between the two powers.
Late Tuesday, the White House announced that, in response to China’s retaliatory tariffs, the U.S. would impose an additional 245% tariff on Chinese goods. This new development is expected to add further pressure to global markets, with gold continuing to be seen as a reliable asset during periods of uncertainty.
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