Gold soared to a new high on Thursday after posting its biggest one-day gain in 18 months, as an escalation of the US-China trade war overshadowed US President Donald Trump’s tariff relief.
Spot gold rallied 2% to $3,147.15 per ounce by 10:25 a.m. ET, approaching the all-time high of $3,167.75 set last month. US gold futures in New York shot up by 2.6% to $3,160.50 an ounce.
The rally followed an initial surge in the previous session that saw the precious metal gain over 3%, as US tariffs on 60 of its trade partners came into effect. Trump’s subsequent announcement of a 90-day pause to higher tariffs on some countries did not slow down gold, despite reinvigorating the US stock market to record its best intraday performance since the financial crisis.
Still, Trump also hiked duties on China to 125%, effective immediately, after Beijing announced plans to retaliate with an 84% tariff — exacerbating concerns the world’s two biggest economies will become enmeshed in a crippling trade war.
“When you’re in a crisis and gold is selling off, that’s telling you you’ve got a liquidity problem,” Carlyle Group Inc.’s Jeff Currie told Bloomberg Television on Thursday. “Then boom, they came out with the reprieve, gold bounced back up which is telling you liquidity came back into the system,” he said. (Mining)
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