Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold surged 3% to close above $3,056 as the escalating trade war between US and China undercut the dollar and stoked safe-haven inflows. It was the best day for bullion since March 2023. Silver climbed 2.5% to $30.23 an ounce.

One day after ratcheting up tariffs on China to 104%, President Trump raised them again, this time to 125%, prompting fresh concerns that the burgeoning trade war with the biggest US trading partner could spin out of control. The unexpected move came in retaliation for China�s tit-for-tat decision to put 84% duties on US goods.

At the same time, the White House paused the so-called reciprocal tariffs on other nations. After more than a week of carnage in the equities markets, Wall Street cheered the decision. The Dow and S&P 500 soared 6% and 7.3%, respectively, while the Nasdaq rockets 9.4% higher.

Yet the demand for safe-haven assets continued as investors sought protection from the suddenly chaotic nature of US trade policy.

The tariff tumult almost completely overshadowed the release of the Fed�s minutes from its last meeting, an event that ordinarily drives the markets. Notably, the committee members voiced concern that the new trade policies could lead to stagflation, a pernicious combination of rising prices and growth.

The dollar fell 0.3% against major rivals led by the Swiss franc and yen, both of which are seen as haven currencies.

Platinum and palladium added 1% and 1.4%, respectively.

At the New York spot close: gold gained $88.10 to $3,051.50; silver climbed 73 cents to $30.23; platinum picked up $9 to $908.60; and palladium rose $12.70 to $925.90 an ounce.