Gold prices jumped more than 3% to above $3,065 an ounce on Wednesday, as escalating U.S.-China trade tensions fueled demand for the safe-haven asset. Trump announced on Truth Social a 90-day pause and a 10% reciprocal tariff reduction for all countries except China. In the same post, he said tariffs on Chinese imports would rise to 125%. Treasury Secretary Scott Bessent later clarified that the 10% tariffs apply during negotiations but exclude China and sector-specific tariffs. The move followed Beijing's announcement of new tariffs on U.S. goods to 84%, up from 34%, and the European Union's approval of retaliatory tariffs on €21 billion worth of U.S. imports. Investors also digested the latest FOMC minutes, with Fed officials expecting tariffs to push inflation higher this year but noting uncertainty about how strong or lasting the impact would be. Adding to gold's momentum, the World Gold Council reported that gold-backed ETFs saw inflows of 226.5 metric tons, worth $21.1 billion, in the first quarter. (Newsmaker23)

Source: Trading Economics