Gold Prices Surge Over 1% as Trump Hikes Tariffs on China to 125%
In a move that sent shockwaves across the global financial markets, US President Donald Trump has hiked tariffs on Chinese goods to 125%. This sudden development has led to a surge in gold prices, with spot gold recording its best day since October 2023.
According to Reuters, spot gold was trading at $3,119.18 per ounce at 3 am (GMT) on Thursday, marking a significant increase of over 1%. The American gold futures, on the other hand, climbed 1.8% to $3,135.50.
This sudden move in gold prices is attributed to the escalating trade tensions between the US and China. The 125% tariff hike on Chinese goods is seen as a major escalation in the trade war, which has been ongoing for several months. The US has been imposing tariffs on Chinese goods to pressure Beijing into making concessions on intellectual property, technology transfer, and other trade issues.
The Chinese government has retaliated by imposing tariffs on US goods, including soybeans, aircraft, and automobiles. The trade war has been taking a toll on the global economy, with many economists warning of a potential recession.
The gold price surge is a clear indication of the growing uncertainty and volatility in the global financial markets. Gold is often seen as a safe-haven asset during times of economic uncertainty, and investors are flocking to the precious metal as a hedge against potential market instability.
The Trump administration’s decision to hike tariffs on Chinese goods to 125% is seen as a major escalation in the trade war. This move is likely to have far-reaching consequences for the global economy, including a potential slowdown in trade and economic growth.
The Chinese government has pledged to retaliate against the US tariffs, which could lead to a further escalation in the trade war. The US and China have been locked in a trade dispute for several months, and it appears that the situation is unlikely to resolve anytime soon.
The gold price surge is a clear indication of the growing uncertainty and volatility in the global financial markets. Investors are seeking safe-haven assets such as gold, which is seen as a hedge against potential market instability.
Gold has been a popular investment option during times of economic uncertainty, and the recent price surge is likely to attract more investors to the precious metal. The US-China trade war has been a major driver of gold prices, and it is likely to continue to play a significant role in the global financial markets.
In conclusion, the gold price surge is a clear indication of the growing uncertainty and volatility in the global financial markets. The Trump administration’s decision to hike tariffs on Chinese goods to 125% is seen as a major escalation in the trade war, and investors are seeking safe-haven assets such as gold.
As the trade war continues to escalate, it is likely that gold prices will continue to rise. Investors who are looking for a safe-haven asset during times of economic uncertainty should consider investing in gold.
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