Gold prices jumped in Asian trading on Wednesday buoyed by safe-haven appeal, as U.S. tariffs came into effect leading to a combined 104% tariff on China, while bullion was further supported by the dollar falling to a six-month low.
As of 02:35 ET (06:35 GMT), Spot Gold jumped 1.6% to $3,031.02 per ounce. Gold Futures expiring in June jumped 1.9% to $3,046.61 an ounce on Wednesday.
Gold had fallen below $3,000 per ounce earlier this week to its lowest level since March 13.
Prior to this, it had reached a record high on April 3, after tariffs were announced, but hefty losses in other financial markets led to investors selling gold to cover losses elsewhere.
The safe-haven appeal of the yellow metal was reignited after tariffs announced by U.S. President Donald Trump came into effect on Wednesday.
The most significant measure included a 104% cumulative tariff on Chinese imports—a combination of prior duties and a new 50% hike announced on Tuesday.
Other notable tariffs included a 20% duty on the European Union, 24% on Japan, 46% on Vietnam, 25% on South Korea, and 32% on Taiwan.
A day earlier, China’s Ministry of Commerce had vowed it would “fight to the end” if Washington proceeded with the new tariffs, raising concerns over further economic disruption and triggering a risk-off mood in markets globally.
Market focus is now turning to China’s next steps, as well as any signals from the Federal Reserve about how it may respond to growing recession risks.
The US Dollar Index slipped 0.7% to a six-month low in Asian trading on Tuesday, making gold cheaper for overseas buyers.
Among other precious metals, Silver Futures jumped 1.8% to $30.210 an ounce, while Platinum Futures gained 0.5% to $916.65 an ounce.
Copper prices fell on Tuesday as investors assessed the implications of Trump tariffs on industrial metals
China is the world’s largest consumer of copper, and any disruption to its trade or economic growth poses risks to global demand.
Benchmark Copper Futures on the London Metal Exchange fell 0.6% to $8,595.0 a ton, while Copper Futures expiring in May was 0.6% higher at $4.1512 a pound.
