ALBAWABA – Amid the ongoing trade and tariff war between China and the United States (US), gold surged to over $3,357, marking the third consecutive increase in the yellow metal’s price this year.
Gold rises above $3,357
Spot gold surged to over $3,357 just a few hours ago, marking the third price spike so far this year. This recent surge is attributed to the ongoing trade and tariff tensions between the United States (US) and China.
Notably, The United States (US) President, Donald Trump, previously announced the impose of new tariffs that significantly impacted China with an additional 50% total of tariff, bringing the overall total to 145%.
This decision immediately affected China's economy and its demand for oil imports. In response, China announced a 125% tariff on American products and goods.
The United States (US) President, Donald Trump, previously announced the impose of new tariffs that significantly impacted China with an additional 50% total of tariff, bringing the overall total to 145%. (Shutterstock)
Trump’s recent tariffs are fueling a global economic conflict, contributing to recession, inflation, and reduced oil demand in China, the US, and worldwide.
Gold prices immediately surged following a statement by Chair Jerome Powell, head of the US central bank, who warned that President Trump’s recent decision would lead to inevitable economic slowdown, higher prices, and increased unemployment risks both in the United States and globally.
Stephen Innes, head of trading and market strategy at SPI Asset Management, said: “The dollar is stumbling under the weight of trade-policy whiplash, and portfolio managers have lost faith in anything that involves political discretion.”
However, the Trump administration remains confident that the tariff decisions will lead to stronger US manufacturing, new job opportunities for American citizens and workers, and high tax revenues.
