The price of gold jumps by more than 1% despite the commercial truce … and the eyes on the fees of China

Gold prices rose by more than 1% today, Thursday, with investors resorting to safe haven, after US President Donald Trump’s decision to increase customs duties on China, the largest consumer of minerals in the world.

This came despite Trump’s decision to reduce the fees from the rest of the countries.

Gold rose in instant transactions 1.2% to $ 3119.18 an ounce, by 0700 Abu Dhabi time.

And US gold futures increased 1.8%, registering $ 3135.50.

Trade this truce

Trump decided in a sudden procedure yesterday, Wednesday, to suspend the customs duties he announced last week, but he increased the pressure on China.

Trump said that customs duties on imports from China will increase from 104% to 125%, in an escalation to a risky confrontation between the two largest economies in the world.

The two countries exchanged the imposition of fees more than once during the past days.

“If we enter a slow growth period, which is our primary assumption, we believe that interest rates will eventually turn towards a decrease, which will push gold towards height, due to the continued inflation fears during most of the year due to the effects of customs duties,” said Edward Mayer, an analyst at Maricks.

“In the end, we expect gold to reach $ 3,200 by the end of the month, if not before,” he added.

Gold, which is a hedging tool against the state of universal uncertainty and inflation, increased by more than 18% in 2025, largely driven by Trump plans for customs tariffs, expectations for reducing interest rates by the Federal Reserve (US Central Bank), geopolitical tensions in the Middle East and Ukraine, strong purchase by central banks, and increasing investments in traded investment funds Gold supported.

The risks of slow growth

The minutes of the Federal Reserve meeting showed that policymakers almost unanimously agreed at their meeting last month that the American economy is facing the risk of slowing growth and accelerating inflation at the same time. Some of them indicated that the bank may face “difficult differentials” in the future.

The markets expect 72% to reduce the interest rate in the United States in June.

Gold, which does not generate return to prosperity in the low interest rate environment.

Investors are currently looking forward to consumer price index data in the United States, to be released later today, Thursday.

Prices of precious metals

As for other precious metals, silver settled in instant transactions at $ 31.08 an ounce, platinum lost 0.5%, recording 932.81 dollars, and palladium fell 1.2% to 922.72 dollars.