Gold stabilizes and increases in response to rising trade war worries

Gold rebounded after a three-day decline, driven by ongoing concerns regarding US President Donald Trump’s progressively aggressive trade war and retaliatory measures from various affected nations, potentially jeopardizing global economic stability.

The precious metal surged back above $3,000 an ounce, recovering from a nearly 5% loss over the last three days—the largest drop since 2021. In his recent actions, Trump threatened to impose an additional 50% tariff on imports from China, to which Beijing retaliated by asserting its readiness to “fight to the end.”

This year, bullion has experienced significant gains—hitting record highs and attracting capital into exchange-traded funds—as fears of extensive economic disruption have increased demand for safe-haven assets. Nevertheless, amid recent sharp sell-offs in global markets, gold was also affected during this tumultuous period as investors sought to recover losses in other areas.

As of 1:45 p.m. in Singapore, gold for immediate delivery climbed 0.6% to $3,000.63 an ounce. Silver prices remained stable, while palladium and platinum both saw increases of over 1%. The Bloomberg Dollar Spot Index slipped slightly.

© 2025 Bloomberg

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