Gold climbs on safe-haven demand as Trump hikes China tariffs
Thu April 10 2025
Gold prices rose on Thursday as investors turned to the safe-haven asset after U.S. President Donald Trump escalated tariffs on China, the world's top metal consumer, despite his decision to temporarily ease steep duties on several other countries.
FUNDAMENTALS
* Spot gold was up 0.2% at $3,089.17 an ounce, as of 0022 GMT. Bullion scaled to an all-time peak of $3,167.57 on April 3. U.S. gold futures rose 0.8% to $3,104.90.
* In a stunning reversal, Trump on Wednesday decided to temporarily lower the
hefty duties he had just imposed on dozens of countries while further ramping
up pressure on China.
* Trump said he would raise the tariff on Chinese imports to 125% from the 104% level, escalating a high-stakes confrontation between the world's two largest economies. The two countries have traded tit-for-tat tariff hikes repeatedly over the past week.
* Gold, traditionally seen as a hedge against economic and political
uncertainty, often thrives in a low-interest-rate environment.
* According to minutes from the Federal Reserve's
latest meeting, policymakers were nearly unanimous last month in warning that
the U.S. economy faced risks of higher inflation alongside slower growth, with
some noting "difficult tradeoffs" may lie ahead.
* Traders await the U.S. Consumer Price Index data, due later in the day, and
the Producer Price Index on Friday for crucial insights into the Fed's rate
trajectory.
* Spot silver fell 0.5% to $30.89 an ounce, platinum lost 0.4% to $933.20 and
palladium retreated 1% to $922.50.