Gold prices surged on Wednesday as fears of a new trade war between the US and China boosted demand for safe-haven assets. Spot gold rose 0.2% to $2,848.69 per ounce, while US gold futures gained 0.2% to $2,879.70.
The US imposed tariffs on Chinese goods earlier this week, prompting Beijing to retaliate with its own import duties. This sparked concerns of an escalation in the trade tensions between the world’s two largest economies.
Meanwhile, experts warn that the ongoing uncertainty over global economic growth could lead to slower interest rate cuts and increased inflation risks. However, gold is often seen as a hedge against inflation, which may support demand for precious metals despite higher interest rates.
The ADP employment report and payrolls report this week will provide more insight into the health of the US economy. In the meantime, spot silver rose 0.2% to $32.15 per ounce, while platinum edged 0.3% higher to $966.95.
Source: https://www.cnbc.com/2025/02/05/gold-rises-to-all-time-high-on-sino-us-tariff-war.html