Gold prices have significantly increased amid escalating trade tensions between the US and China. The rise in tariffs has been a primary factor in this growth.
Gold at Record Highs
As of 12:01 pm EST on April 10, 2025, gold is trading at $3,158.055 per troy ounce, marking a substantial daily gain of $76.055 (2.47%). The precious metal is performing near the upper end of its daily trading range ($3,071-$3,175). Analysts noted that this is the 'biggest daily gain since October 2023.'
US-China Trade War as Key Factor
The primary catalyst behind gold's impressive rally is the intensifying trade conflict between the United States and China. President Trump's administration has raised tariffs on Chinese goods to 125%, while China has retaliated with an 84% levy on US imports. Despite announcing a 90-day pause on tariffs for other countries, the bilateral tensions continue to fuel economic uncertainty.
Gold's Outlook in Economic Uncertainty
Recent meeting minutes from the Federal Reserve revealed policymakers' concerns about 'simultaneous risks of higher inflation and slower growth.' In the current environment, where 84 basis points of interest rate cuts are being priced in by year-end, gold traditionally thrives. Experts remain bullish on gold’s prospects, with prices already up over 18% year-to-date.
Given the current economic conditions and rising gold prices, investors consider this asset a strategically important component of their portfolios. The market continues to show interest in safe-haven assets amid instability.
