Gold hits record high as US-China tariff battle deepens; India gets 90-day pause amid trade turbulence
Gold prices surged to a record high on Thursday as Trump¡¯s tariff war intensified against China, while India and others received a temporary pause. Investors rushed to gold amid a weakening dollar and global uncertainty, triggering fresh market concerns.
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 announces tariff pause, but excludes China
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.
Donald Trump has declared a 90-day suspension on ¡°reciprocal¡± tariffs for nearly 60 countries but excluded China | Credit: X
Market reactions and the gold surge
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.
Why the sudden tariff pause?
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.
India¡¯s stand on trade talks
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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Nancy Jaiswal is a journalist who started her career in reporting and has covered both hard and soft news. From serious city news developments to lighthearted lifestyle pieces, she has written on almost everything hapenning in India (except maybe alien invasions¡ªyet!). For her, writing isn¡¯t just work; it¡¯s a passion, an obsession, and sometimes the reason she forgets to reply to texts.
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