Gold prices hit a new all-time high, driven by a weakening US dollar and escalating trade tensions between the US and China. The precious metal's rally is fueled by a combination of factors, including the dollar's decline and increased uncertainty surrounding global trade.
Gold prices reached a new historic high on Thursday, with April futures settling at $2,873.70, indicating a gain of $23 (0.81%). This marks the second consecutive day that gold has surpassed its previous record set on Wednesday, October 30, 2024. The upward momentum in gold prices is attributed to several factors, primarily the significant weakness of the US dollar over the past two days. The dollar index fell 0.43% to 107.991, continuing its decline from Monday's peak of 109.915.
Yesterday's intra-day high of 109.915 proved unsustainable, resulting in the index retreating and settling at 108.465. The last time the dollar index was at yesterday's level above 109 was in November 2022. The escalating trade tensions between the US and China are adding further support to gold's price surge. While Canada and Mexico were granted 30-day grace periods to negotiate tariff resolutions, China faced immediate implementation of new trade barriers. Beijing's response was swift and comprehensive. The Associated Press reported that China announced retaliatory tariffs on select American imports and launched an antitrust investigation into Google, actions that coincided with the activation of President Trump's new levies on Chinese products. This latest exchange echoes the 2018 trade tensions, when both nations engaged in a cycle of escalating tariffs. However, analysts note key differences in the current situation. Gary Ng, senior economist at Natixis Corporate and Investment Banking in Hong Kong, explains: 'It's aiming for finding measures that maximize the impact and also minimize the risk that the Chinese economy may face... At the same time... China is trying to increase its bargaining chips.' The current trade dispute appears more nuanced than its 2018 predecessor. China has demonstrated greater strategic sophistication, implementing a broader range of countermeasures that extend beyond simple tariffs to affect multiple sectors of the U.S. economy. However, Beijing must balance its response against domestic economic considerations, given China's significant dependence on international trade. As the administration maintains its commitment to tariff policies, the impact will likely be felt most acutely by consumers in affected nations, as these measures typically contribute to increased inflationary pressures
Gold Prices Record Highs Dollar Weakness Trade Tensions China US
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold Prices Surge on Weaker-Than-Expected Employment DataGold prices hit a near four-week high on Wednesday as a weaker-than-expected private employment report for December fueled hopes for less aggressive rate hikes from the Federal Reserve. Traders are awaiting key U.S. labor data and Donald Trump's inauguration for further market direction.
Read more »
Gold Prices Surge to Near Three-Month Highs Amid Tariff UncertaintyGold prices climbed to near their highest levels in three months on Wednesday, driven by a weakening dollar and growing apprehension over U.S. President Donald Trump's trade policies. Investors are increasingly nervous about the potential for trade wars and heightened market volatility stemming from Trump's proposed tariffs on goods from China, Mexico, and Canada. Gold is often seen as a safe haven asset during times of economic and geopolitical uncertainty.
Read more »
Gold Prices Rise on Dollar Weakness and China's Gold ReservesGold prices experienced an upward trend on Tuesday, attributed to a decline in the U.S. dollar and continued gold purchases by China's central bank.
Read more »
Gold Prices Rise on Dollar Weakness and China's Gold PurchasesGold prices edged higher on Tuesday, bolstered by a decline in the US dollar and China's continued accumulation of gold reserves. Investors are closely monitoring US economic data for clues on the Federal Reserve's policy direction.
Read more »
Oil Prices Surge to Three-Month Highs on New U.S. Sanctions Against RussiaOil prices climbed to their highest levels in over three months on Monday, driven by expectations that new U.S. sanctions targeting Russian oil producers and shipping vessels will disrupt global crude supplies. Brent crude futures surged past $81 per barrel, while U.S. West Texas Intermediate rose above $77 per barrel.
Read more »
Gold prices feeling some pressure but outpeforming S&P 500 as markets react to global trade warThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Read more »