Gold prices rose on Wednesday as the dollar weakened and as investors braced for U.S. President Donald Trump’s tariffs to take effect, with most flocking to safe-haven gold for cover as global trade tensions escalate and fears of a recession mount.
Spot gold gained 0.6% to $3,000.13 an ounce as of 0250 GMT. U.S. gold futures rose 0.8% to $3,014.40.
The dollar lost ground as the imposition of tariffs looked imminent, making greenback-priced gold cheaper for overseas buyers.
Trump ratcheted up duties on Chinese imports to 104% to counter Beijing’s retaliatory tariffs, accusing Beijing of manipulating the yuan to offset the levies. China refused to bow to what it called blackmail, vowing to “fight to the end”.
Country-specific tariffs would take effect as planned at 12:01 a.m. Eastern Time (0401 GMT).
“The downward shift in the dollar on tariff worries effectively paved the way for gold to reclaim the $3000 level,” KCM Trade chief market analyst Tim Waterer said.
“Due to global growth and inflation uncertainties, gold is still on track to pursue new all-time highs despite experiencing a few bumps in its progress over the last week.”
Gold rebounds above $3,000/oz as trade war fears, weaker dollar support
However, some gains in non-yielding bullion were limited by U.S. benchmark 10-year note yield hitting an over one-week high.
Gold hit a record high of $3,167.57 on April 3, and its excursion to these levels has drawn comparisons with the last time political and economic turmoil were the main drivers of record prices, back in 1980 during the Iranian Revolution.
Gold-backed exchange-traded funds registered the largest quarterly inflow in three years in January-March 2025, World Gold Council data showed.
Markets are waiting for the minutes of the U.S. Federal Reserve’s latest policy meeting, expected later in the day, and U.S. consumer price index data on Thursday and the producer price index on Friday.
Spot silver eased 0.1% to $29.80 an ounce, platinum lost 0.4% to $917.55 and palladium fell 0.2% to $905.25.
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