Gold Rises as Trade Tensions Fuel Safe-Haven Demand

Gold prices climbed over 1% in early Thursday trading, as investors turned to safe-haven assets amid escalating global trade tensions. The latest tariff actions, particularly those targeting China, have reignited market concerns and pushed demand for precious metals higher.]

Spot gold rose 1.2% to $3,119.18 per ounce, while U.S. gold futures jumped 1.8% to $3,135.50.

Despite a temporary easing of tariffs on some countries, the overall increase in trade restrictions has raised fears of a broader economic slowdown. This environment continues to support gold, especially as expectations grow for interest rate cuts in the coming months.

Gold, which yields no interest, typically performs well in low-rate settings and during times of economic uncertainty. Current projections suggest prices could approach $3,200 before the end of the month.

Since the start of 2025, gold has gained more than 18%, driven by a combination of:

Heightened trade tensionsAnticipated monetary easingOngoing geopolitical risksStrong central bank demandRising inflows into gold-backed investment funds

Markets are now closely watching upcoming U.S. inflation data, which could play a key role in shaping the next steps for monetary policy, with a growing probability of a rate cut in June.

Among other precious metals, silver held steady at $31.08 per ounce. Platinum dipped to $932.81, while palladium declined to $922.72.