Insignia Consultants | Gold hits record high as US-China trade war intensifies, dollar weakens
Gold hits record high as US-China trade war intensifies, dollar weakens
April 10 (Reuters) - Gold prices jumped nearly 3% to an all-time high on Thursday, as a drop in the dollar and an escalating trade war between the U.S. and China drove investors towards the safe-haven allure of the precious metal.
Spot gold climbed 2.8% to $3,168.26 an ounce at 11:32 a.m. ET (1532 GMT), after hitting a record high of $3,171.49 earlier in the session. U.S. gold futures rose 3.5% to $3,185.50.
U.S. President Donald Trump said on Wednesday he would temporarily lower hefty duties on dozens of countries, but ramped up the tariff on China to 125% from 104%.
"Gold regains its safe-haven appeal and gets back on track for new all-time highs," said Nikos Tzabouras, Senior Market Analyst at Tradu.com.
"However, prospects of deals with trading partners pose a significant risk to gold's upside potential, as they could renew pressure on the metal. Additionally, headwinds may arise from pared-back Fed rate cut bets that can strengthen the dollar."
