Spot gold climbed 1.2% on Thursday, reaching $3,120.01 per ounce as ongoing geopolitical tensions continue to fuel demand for the yellow metal, which is regarded as a safe haven. American gold futures increased by 1.9%, hitting $3,137.20.
On Wednesday, U.S. President Donald Trump announced plans to raise tariffs on Chinese imports from 104% to 125%. The two largest economies in the world have engaged in a series of tariff measures over the past week. However, Trump has chosen to temporarily reduce the high tariffs he recently imposed on several other countries.
Gold, often viewed as a hedge against global uncertainties and inflation, has surged over 18% in 2025. This rise is largely attributed to Trump’s tariff policies, expectations of interest rate cuts by the Federal Reserve, ongoing geopolitical tensions in the Middle East and Ukraine, significant purchases by central banks, and increased investments in gold-backed exchange-traded funds.
The appeal of non-yielding bullion may diminish if inflationary pressures force the Federal Reserve to maintain higher interest rates. Traders are currently awaiting the release of U.S. consumer price index data later today, along with the producer price index scheduled for Friday.
In other metals, spot silver rose by 0.7% to $31.24 per ounce, platinum gained 0.2% to $938.95, while palladium fell by 0.6% to $926.41.
