Gold price pops nearly 5% in just 24 hours on Trump’s tariffs 90-day pause
The price of gold (XAU/USD) experienced a significant surge on Thursday, climbing from below $3,000 to $3,132, representing an almost 5% increase since Tuesday morning. This upward trajectory in the precious metal’s value coincides with developments in international trade relations.
The primary catalyst for this rally appears to be the announcement by United States President Donald Trump of a 90-day pause on increased tariffs for 56 countries and the European Union, maintaining the baseline rate of 10%. Simultaneously, tariffs on China were reportedly increased to 125%, effective immediately, following China’s announcement of retaliatory tariffs of 84% on all US imports. These actions have heightened concerns regarding the potential escalation of the trade war between the world’s two largest economies.
Furthermore, the People’s Bank of China (PBOC), China’s central bank, has weakened the Yuan (CNY) for the sixth consecutive session, despite warnings from US Treasury Secretary Scott Bessent. This suggests a potential strategy by Beijing to utilize its currency as a negotiating tool, reminiscent of tactics employed during previous trade disputes. The market is closely monitoring these developments, with potential implications for global economic stability and the value of safe-haven assets like gold.
