Gold prices extended sharp gains in Asian trading on Thursday, approaching a record high, as safe-haven demand remained firm amid escalating trade tensions with China despite President Donald Trump’s 90-day pause on reciprocal tariffs for most countries.
As of 02:05 ET (06:05 GMT), Spot Gold jumped 1.6% to $3,123.58 per ounce. Gold Futures expiring in June jumped 1.9% to $3,137.61 an ounce.
The yellow metal had reached a record high of $3,168 per ounce on April 3, after tariffs were announced, but hefty losses in other financial markets led to investors selling gold to cover losses elsewhere, leading to recent declines.
Gold’s renewed momentum was sparked on Wednesday as new tariffs imposed by the U.S. officially took effect.
While Trump quickly followed with a 90-day pause for most trading partners, he simultaneously raised tariffs on Chinese imports to 125%, stoking fears of deeper trade disruptions.
Meanwhile, China’s elevated tariffs of 84% on U.S. imports took effect on Thursday.
The mixed signals have left investors wary of further escalation between the world’s two largest economies. Persistent uncertainty around trade policy continues to drive demand for gold, seen as a hedge against geopolitical and economic instability.
The US Dollar Index edged 0.2% lower, remaining near a six-month low in Asian trading, making gold cheaper for overseas buyers.
Among other precious metals, Silver Futures jumped 2.4% to $31.155 an ounce, while Platinum Futures gained 0.6% to $940.20 an ounce.
Copper prices jumped on Friday as investors cheered Trump’s 90-day pause, although caution persisted on higher China tariffs.
“Clearly, though, there’s still plenty of uncertainty as tariffs against key metal consumer, China, have been raised to 125%,” ING analysts said in a note.
“However, the prospect of a prolonged trade war has also raised expectations for Beijing to unveil more aggressive stimulus measures. This could cap the downside to copper and other industrial metals,” they added.
Benchmark Copper Futures on the London Metal Exchange surged 4.7% to $9,037.15 a ton, while Copper Futures expiring in May fell 0.8% to $4.4295 a pound.
