Gold Prices Surge to Highest Level in 11 Weeks Following Trump’s Tariff Proposals with China

Gold reached its highest intraday price since late October, as traders continued to assess the global economic outlook while President Donald Trump shared his opinions on trade and immigration policies.

The precious metal was trading around $2,762 per ounce after a 1.4% surge in the previous session, driven by Trump’s tariff threats that increased demand for safe-haven assets. The president indicated he is contemplating a 10% tariff on Chinese imports in response to the influx of fentanyl, while also reiterating intentions to impose import duties as high as 25% on Canada and Mexico in the coming weeks.

Investors are increasingly looking at how the Trump administration’s tariff and tax cut strategies could impact the country’s financial health and reignite inflation. This could restrict the Federal Reserve’s capacity to continue easing monetary policy. Rising borrowing costs generally put pressure on bullion, which does not yield interest.

Gold set multiple records in 2024, with gains fueled by the Fed’s shift to a more accommodative monetary policy, rising geopolitical tensions, and significant central bank purchases. The asset could further benefit from heightened demand for safe-haven options amid worries regarding the new president’s immigration stance and potential tensions in US relations with other countries.

Spot gold increased by 0.6% to $2,762.51 an ounce at 10:34 a.m. in London. The Bloomberg Dollar Spot Index fell by 0.2%. Prices for silver, platinum, and palladium also saw an uptick.

© 2025 Bloomberg

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