Gold prices rose Thursday as investors turned to gold as the US President escalated tariffs on China, the world’s top metal consumer.
US President temporarily eased steep duties on several other countries, but he raised the tariff on Chinese imports to 125%, escalating a high-stakes confrontation between the two largest economies.
Gold is traditionally seen as a hedge against economic and political uncertainty and often thrives in a low-interest-rate environment.
The Federal Reserve’s latest meeting minutes warned that the US economy faced risks of higher inflation and slower growth, with some noting that “difficult tradeoffs” may lie ahead.
Traders await the U.S. Consumer Price Index data and the Producer Price Index on Friday for crucial insights into the Fed’s rate trajectory.
