Gold prices rose more than 1% on Thursday, extending the previous session's sharp gains, as a weaker dollar and escalating trade tensions between the US and China prompted investors to turn to the safe-haven appeal of the precious metal.
Spot gold rose 1.6% to $3,132.29 an ounce by 9:29 a.m. ET (1329 GMT), after rising more than 3% on Wednesday. US gold futures rose 2.3% to $3,150.20.
US President Donald Trump said on Wednesday he would temporarily lower tariffs on dozens of countries, but raised tariffs on China to 125% from 104%.
"Gold is regaining its appeal as a safe haven and is back on track to hit a new all-time high," said Nikos Tzabouras, senior market analyst at Tradu.com.
"However, the prospect of a deal with trading partners poses a significant risk to gold's upside, as it could renew downward pressure on the metal. In addition, headwinds could arise from Fed rate cut bets that could strengthen the dollar."
Meanwhile, the dollar index (.DXY) , opens new tab , fell more than 1% against its rivals, making gold cheaper for holders of other currencies.
Data on Thursday showed U.S. consumer prices unexpectedly fell in March, but inflation risks are likely to rise after Trump doubled tariffs on China.
Following the data, traders bet that the U.S. Federal Reserve will continue to cut interest rates in June and may reduce its policy rate by a full percentage point by the end of the year.
"We're seeing central banks buying (gold), so as long as we see inflows into ETFs and more monetary policy risk, there are a lot of key drivers that will continue to support gold," said Alex Ebkarian, chief operating officer at Allegiance Gold.
Spot silver fell 0.4% to $30.91 an ounce, platinum fell 0.1% to $936.12, and palladium fell 2% to $912.52.(Newsmaker23)
Source: Reuters
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...