Gold Hits Record High on US-China Trade Tensions
Gold has surged to a record high as retaliatory tariffs between the US and China fuel haven demand.
After President Trump imposed 10% tariffs on Chinese goods, Beijing swiftly retaliated, weakening the dollar and boosting the appeal of gold as a safe haven asset.
Gold rose as much as 1% to $2,844.35 an ounce, surpassing its previous all-time high set on Monday. China's retaliatory measures include tariffs on American companies and US goods, a move designed to avoid escalating tensions.
Carsten Fritsch, an analyst at Commerzbank, attributes the surge in gold to "uncertainty fueled by Trump's erratic tariff decisions."
Spot gold gained 0.8% to $2,837.54 an ounce in New York at 10:39 a.m., while the Bloomberg Dollar Spot Index dipped 0.7% after six consecutive sessions of gains. Silver and platinum also advanced, but palladium fell.
Trade war concerns have rattled precious metals markets before the imposition of tariffs. US gold and silver prices have spiked above international benchmarks, prompting traders to import large volumes of metals to America.
The volatility has also resulted in a surge in lease rates for gold and silver, indicating increased demand for temporary borrowing of the metals.