Gold jumps nearly 2% as trade tensions escalate; silver tops $31

Gold bars

Gold prices climbed further on Thursday, rising by $60, as escalating trade tensions between the world’s two largest economies fueled uncertainty and boosted demand for safe-haven assets.

The rally followed US President Donald Trump’s announcement on Wednesday that tariffs on Chinese imports would rise to 125% from 104%, intensifying the ongoing trade war.

June gold futures gained 1.95%, or $60, to $3,139.40 an ounce by 9:00 a.m. Mecca time. Spot gold rose 1.28%, or $39.40, to $3,122.10.

May silver futures advanced 2.56% to $31.20 an ounce, while spot platinum edged 0.45% higher to $940.31.

The US dollar index, which tracks the greenback against a basket of six major currencies, slipped 0.26% to 102.63.

Gold prices have surged more than 18% year-to-date, driven by Trump’s trade policies, ongoing geopolitical tensions in the Middle East and Ukraine, and sustained buying from central banks.

Investors are now awaiting US consumer price data due later today, which may show annual inflation slowing to 2.5% in March from 2.8% in February.

Weekly jobless claims data is also expected on Thursday, followed by the producer price index release on Friday.