English>

Market News

Gold prices extend gains as US-China trade war escalates - REUTERS

APRIL 10, 2025

By Anmol Choubey

(Reuters) - Gold prices extended gains on Thursday, driven by an escalating trade war between the United States and China, even after President Donald Trump announced a 90-day pause on tariffs for other countries.

Spot gold was up 0.9% at $3,110.69 an ounce at 0816 GMT, after its biggest daily gain since October 2023 on Wednesday. U.S. gold futures were up 1.5% to $3,126.70.

"We're just living in a world of extreme uncertainty. We just don't really know which way this trade war is going to go ... I think for the course of this year, gold will march higher," said Nitesh Shah, commodities strategist at WisdomTree.

Trump said on Wednesday he would temporarily lower the hefty duties he had just imposed on dozens of countries, but ramped up the tariff on China to 125% from 104% following Beijing's decision to impose an 84% levy on U.S. goods.

The U.S. Federal Reserve's minutes of its meeting last month showed policymakers were nearly unanimous in thinking the U.S. economy faced simultaneous risks of higher inflation and slower growth, with some noting that "difficult trade-offs" could lie ahead for the central bank.

Investors' focus is on U.S. consumer price index data at 1230 GMT to gauge the trajectory of the Fed's monetary policy. The market is currently pricing in 84 basis points of rate cuts by the Fed by year-end.

Bullion is viewed as a safe haven amid geopolitical and economic uncertainties, and tends to thrive in a low-interest rate environment. Spot gold prices have maintained an upward trend from last year, and have risen over 18% so far this year.

"My forecast (for gold) is for $3,600 in about a year's time with a lot of upside risk, and I wouldn't be surprised if we get to $4,000," Shah said.

Spot silver fell 0.4% to $30.88 an ounce, platinum lost 0.3% to $934.70, and palladium shed 1.3% to $920.79.

(Reporting by Anmol Choubey in Bengaluru. Editing by Mark Potter)

SEE HOW MUCH YOU GET IF YOU SELL

NGN
This website uses cookies We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that you've provided to them or that they've collected from your use of their services
Real Time Analytics