Gold hits record highs as US-China tariffs rise and markets seek safe havens from uncertainty.
Gold Hits All-Time High Amid Renewed US-China Trade Tensions and Market Sell-Off
Gold prices are reaching new highs as tensions between the United States and China continue to rise.
Gold reached an all high on Thursday as XAU / USD reached 3,175.00 per troy ounce during trading hours in the United States before slightly decreasing and stabilizing around 3,160. The rally in the metal was driven by increasing tensions and overall market fragility.
The trade tensions between the United States and China intensified significantly when President Trump imposed a 145% tariff on imports. Beijing retaliated by imposing an 84% tariff on goods. This back-and-forth action sparked worries about growth and led to a noticeable shift toward safer investment options.
The price of gold saw gains due to the sentiment in the market recently. The decrease in the value of the U.S Dollar was noticeable after a than expected consumer price index report for March was released. This suggests a halt or reduction in the Federal Reserve’s plans for interest rates. These events increased the attractiveness of gold for investors seeking protection against rising prices and uncertain economic conditions.
The stock market also felt the impact of the chaos, with the Dow falling 4%. Both the Nasdaq and S&P 500 saw declines of over 5%. This significant selling indicates how anxious investors are feeling these days.
Given the tensions between the United States and China and the lack of inflationary pressures at play, gold is expected to continue to draw in safe haven investments effectively.
