Gold Prices Surge Over 1% on April 10 as US-China Trade War Escalates

Gold Prices Surge Over 1% on April 10 as US-China Trade War Escalates

April 10, 2025 – Global financial markets were shaken today as tensions between the United States and China intensified, driving gold prices to a sharp rise of more than 1% as investors rushed toward safe-haven assets.

Spot gold jumped 1.5% to $3,129.33 per ounce, while US gold futures rose 2.2% to $3,145.80 per ounce, marking the highest levels since October 2023.

The surge followed President Donald Trump's announcement of a tariff increase to 125% on all Chinese imports, signaling a breakdown in trade negotiations. In response, China imposed an 84% tariff on US goods and introduced additional restrictions on American companies operating in China.

These tit-for-tat measures reignited fears of prolonged economic conflict, prompting a flight to safety amid rising inflation risks and slowing global growth.

Edward Meir, an analyst at Marex, commented:
"If tensions persist, gold may breach the $3,200 mark by the end of the month."

Other precious metals showed mixed reactions:

Silver rose 0.6% to $31.21 per ounce

Platinum and palladium saw slight declines due to profit-taking

Meanwhile, market participants are closely watching upcoming US inflation data and signals from the Federal Reserve, as monetary policy could further impact market sentiment.