Gold prices continue to rise, fueled by the deepening trade conflict between the United States and China. On Thursday, spot gold increased by 1.3%, reaching $3,122.02 an ounce, while U.S. gold futures rose 1.9% to $3,137.80. This surge followed President Trump’s recent announcement of a temporary 90-day pause on tariffs for certain countries while simultaneously increasing the tariff on Chinese imports from 104% to 125%.
Nitesh Shah, a commodities strategist at WisdomTree, commented on the current climate, saying, “We’re just living in a world of extreme uncertainty. I believe that gold prices will rise throughout the year.” Analysts predict that gold could reach $3,600 per ounce within a year, with some suggesting it could even hit $4,000 given the current economic and geopolitical uncertainties.
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The U.S. Federal Reserve has indicated concerns about rising inflation and slow growth, which may lead to significant changes in its monetary policy. Investors are keeping a close eye on the upcoming U.S. consumer price index data, expected later today, as it could influence market trends.
As a safe haven asset, gold flourishes during times of instability and typically performs well in low-interest-rate environments. Since the beginning of the year, gold prices have risen over 18%. Other precious metals, however, experienced declines today, with silver down 0.6% to $30.85, platinum slipping 0.4% to $933.55, and palladium falling 1.7% to $915.68.
As the trade war escalates, gold prices will rise, reflecting ongoing global economic uncertainties. Investors are eager to see how this evolving situation will shape the market in the months to come.
