Gold prices rose amid escalating trade tensions between US and China

Gold prices rose by 0.6% on Wednesday, supported by increased investor demand for safe-haven assets amid escalating global trade tensions.

U.S. President Donald Trump announced plans to raise tariffs on Chinese imports to 104%, accusing Beijing of manipulating the yuan. China rejected the accusations, declaring it was prepared to “fight to the end” in the escalating trade tensions.

According to Tim Waterer, Chief Market Analyst at KCM Trade, gold still has potential to reach new all-time highs despite its recent correction.

On April 3, the precious metal's price hit a record level of $3,167.59 per ounce. Analysts are comparing the current situation to the 1980 price surge triggered by the Iranian Revolution and global instability.

According to the World Gold Council, gold-backed ETFs saw their largest quarterly inflows in three years during the first quarter 2025.

This week, investors are awaiting the release of the US Federal Reserve's latest meeting minutes on Wednesday. The Consumer Price Index (CPI) and Producer Price Index (PPI) data will be released on Thursday and Friday, respectively, Reuters reports.