Gold Prices Hit Record High Amid US-China Trade Tensions

2025-02-08 06:20:25

(MENAFN) Gold prices soared to a historic peak on Wednesday, continuing their record-breaking rally as investors, wary of a global trade war, flocked to safe-haven assets due to escalating US-China trade tensions.

The price of gold increased by 1 percent, with spot gold peaking at USD 2,858.12 per ounce before closing at USD 2,855.32, marking a 0.5 percent gain for the day. US gold futures also saw a rise, settling at USD 2,884.60, up by 0.3 percent.

The surge in gold prices has been attributed to the intensifying trade conflict between the US and China. On Tuesday, US President Donald Trump's additional 10 percent tariffs on all Chinese imports came into effect, prompting Beijing to retaliate with tariffs on various US goods. These included a 15 percent tariff on US coal and liquefied natural gas (LNG), and a 10 percent tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks, set to take effect on February 10. Beijing also hinted at possible sanctions targeting companies like Google.

Trump has reportedly stated that he is not in a rush to engage in talks with Chinese President Xi Jinping to resolve the ongoing tensions.

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