By Gold markets are heating up as investor anxiety spikes due to renewed trade friction between the United States and China. The precious metal, widely regarded as a financial safe-haven, has gained momentum following a sharp rise in geopolitical risks and tariff uncertainty.
Gold prices saw solid gains, with spot gold rising 0.7% to $3,311.33 per ounce, while U.S. gold futures closed 0.6% higher at $3,335.40. Analysts say the ongoing tit-for-tat tariff threats have once again made gold a preferred choice for preserving wealth.
Global markets were jolted by President Trump’s abrupt move to double tariffs on essential metals, intensifying fears of a renewed trade standoff. In response, China hinted at possible retaliatory measures, setting off investor alarm bells. The European Union also voiced concerns, suggesting countermeasures could be on the horizon.
As global equity markets waver, gold is benefiting from investor rotation into safer assets. Additionally, a softer U.S. dollar is boosting demand, as gold becomes less expensive for international buyers. “The market is increasingly factoring in prolonged uncertainty,” said Marcus Chen, a senior commodities analyst. “That’s gold’s sweet spot.”
Eyes are now on the Federal Reserve. Despite inflationary pressures, Fed Governor Christopher Waller stated that the central bank is still open to rate cuts if economic data weakens, adding fuel to the gold rally. Lower interest rates reduce the opportunity cost of holding non-yielding bullion, further enhancing its appeal.
The broader precious metals market delivered mixed results — silver inched up by 0.3%, whereas platinum and palladium recorded modest declines.
The gold rally could persist if tensions escalate further or economic data shows signs of weakening. For now, the world is watching the political chess match unfold — with gold standing strong as the winning move.