10.04.2025 21:21
U.S. President Trump's recent increase of the tariff on China to 145% and the decline of the dollar have led investors to seek safe havens. The price of gold per ounce reached a record high, rising by 2.8% to $3,174.74.
The decline in the dollar and the escalating trade war between the US and China have directed investors towards a search for safe havens, leading to a record high in the price of gold per ounce.
GOLD SURPASSES 3,000 DOLLARS
Gold, a "safe haven" asset, continues to break records due to geopolitical risks, increasing uncertainty, concerns about economic stagnation, and uncertainties regarding the potential consequences of the US's aggressive tariff policy. Today, the price of gold per ounce reached a record high of $3,174.74, with an increase of 2.8%. The price of gold per ounce had also risen by approximately 3% yesterday.
Gold is currently one of the few commodities not affected by tariffs. The price per ounce has increased by 36% over the last 12 months and by more than 20% this year.
CHINA DOES NOT BACK DOWN FROM RETALIATION
Alongside the uncertainty regarding President Donald Trump's tariff policy, China's message of "we will respond to the trade war to the end" has contributed to the rise in the price of gold per ounce. The tariff package announced by Trump on April 2 had raised concerns that a widespread trade war could lead to a global economic slowdown.
Trump's announcement yesterday that he would suspend high tariffs on certain countries for 90 days has revitalized global stock markets and has not slowed the rise of gold.
TARIFF ESCALATION BETWEEN THE US AND CHINA
On April 2, President Donald Trump announced additional tariffs under "reciprocal tariffs" for trade partners, including China.
China responded by raising the tariff on products imported from the US to 84%, and Trump announced that he would raise the tariff to 125% in response.
China had indicated that it would not back down in the escalating tensions following Trump's increase of the tariff on products imported from China to 125%.
Meanwhile, the White House stated today that the tariff rate on China, which President Donald Trump announced would be raised to 125% yesterday, only covers reciprocal tariffs, indicating that the total tariff rate reaches 145% when including those applied due to the fentanyl crisis.
The dollar index, which measures the value of the US dollar against the euro, Swiss franc, Japanese yen, Canadian dollar, British pound, and Swedish krona, fell to 101.08, with a decrease of up to 1.80%.