Gold prices hit a new all-time high on Thursday, climbing nearly 3%, as investors rushed to the safety of their assets amid heightened global economic uncertainty. The spike follows the United States' decision to enforce steep tariffs on China, while offering a temporary 90-day tariff pause to India and several other countries.
US President Donald Trump has declared a 90-day suspension on ¡°reciprocal¡± tariffs for nearly 60 countries, including India and the European Union. The move aims to provide room for negotiations. However, China has been left out of this relief window.
Instead, Washington has implemented a 125% tariff on Chinese imports, which, when combined with a fentanyl-related levy, brings the total duties to 145%. China has responded with its own 84% tariffs on US goods, escalating the ongoing trade conflict.
In response to this, spot gold surged 2.8% to $3,168.26 an ounce, briefly touching a record $3,171.49 earlier in the day. US gold futures also jumped by 3.5%, reaching $3,185.50. The falling dollar and fears over further economic disruption are seen as key drivers behind the shift toward gold.
Other precious metals showed mixed movement¡ªspot silver held steady at $31.02 per ounce, platinum edged up by 0.3% to $940.24, while palladium dropped 1.5% to $918.
Trump¡¯s pause decision came just 13 hours after the initial tariffs took effect. According to reports, market volatility played a significant role. The US Treasury Department raised alarms over disturbances in the government bond market, and Treasury Secretary Scott Bessent reportedly briefed the president personally. Earlier, White House economic advisors had flagged a rapid selloff in US Treasury bonds, signaling instability.
In India, Commerce Minister Piyush Goyal advised exporters not to panic, asserting that the country is pursuing a balanced trade agreement with the US. He emphasized that the process is moving forward with urgency, but without compromising on national interest or entering negotiations in haste.
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