Gold Prices Steady After Hitting Record High as U.S.–China Tensions Stir Safe-Haven Demand
Gold prices held steady in Asian trading on Tuesday after soaring to a new record high above $4,100 per ounce earlier in the day. Renewed U.S.–China trade tensions fueled investor demand for safe-haven assets, while silver also touched fresh highs before retreating.
By 02:16 ET (06:17 GMT), spot gold traded 0.1% higher at $4,115.67 per ounce, after earlier reaching an all-time peak of $4,190.67. Meanwhile, U.S. gold futures were little changed at $4,130.51 per ounce.
Trade Tensions Boost Gold’s Appeal
The surge in gold came after former U.S. President Donald Trump threatened to impose 10% tariffs on Chinese imports in response to Beijing’s export curbs on critical minerals used in electronics and defense industries.
However, Trump later softened his tone, writing on social media that the U.S. was not seeking to harm China, signaling a slightly more diplomatic stance.
Treasury Secretary Scott Bessent told Fox Business Network that a meeting between Trump and Chinese President Xi Jinping remains on schedule for later this month in South Korea, providing a glimmer of hope for continued dialogue.
China’s Ministry of Commerce confirmed that working-level talks were ongoing this week but vowed to “fight till the end” against any U.S. trade measures. The mixed signals kept markets uncertain and extended support for gold, while the U.S. dollar weakened slightly, adding to bullion’s strength.
Silver and Other Metals Pull Back After Record Highs
After a record-setting rally above $53 per ounce, silver prices retreated 1.7% to $49.57 per ounce, while platinum slipped 1.2% to $1,658.45.
Copper prices also declined as demand concerns from China weighed on industrial metals. London Metal Exchange copper futures dropped 2.8% to $10,519.05 per ton, while U.S. copper futures slid 3.4% to $4.96 per pound.
