Gold climbs more than 2% as tariff war heats up, dollar dips

Gold prices gained more than 2% on Wednesday, supported by a decline in the dollar and safe-haven inflows amid escalating U.S.-China trade tensions after Beijing announced more levies on U.S. goods.

Spot gold was up 2.2% at $3,048.19 an ounce, as of 09:01 a.m. ET (1301 GMT). U.S. gold futures rose 2.5% to $3,065.40.

“Ultimately gold continues to be seen as a hedge against instability here. We got a situation where tariffs are becoming a big problem, and you have inflationary expectations going higher, and that’s manifested by higher yields,” said Bart Melek, head of commodity strategies at TD Securities.

“As this trade situation continues to be a problem, I think over time people may be betting that the US dollar becomes less prevalent in global trade,” Melek added.

The dollar index slipped 1% against its rivals, making gold more attractive for other currency holders.

China would impose additional tariffs of 84% on all U.S. goods from April 10, up from the 34% previously announced, China’s finance ministry said, retaliating to President Donald

Trump’s reciprocal tariffs that took effect earlier in the day.

Investors who are worried that tariffs would stoke inflation and hinder economic growth dumped stocks, industrial commodities and took refuge in gold.

Gold, used as a safe investment during times of political and financial uncertainty, has risen more than $400 in 2025 and hit a record high of $3,167.57 on April 3, owing to strong safe-haven demand and central bank buying.

A line chart titled “Spot gold price in USD per oz” that tracks the metric over time.

Investors now await the minutes of the Federal Reserve’s policy meeting later in the day for more clarity on the rate cut path. Also on the radar, the U.S. consumer price index is due on Thursday.

Traders are pricing in a 55% chance of a Fed rate cut in May, according to the CME Fedwatch Tool.

Zero-yield bullion tends to thrive in a low interest rate environment.

Elsewhere, silver gained 1.4% to $30.26 an ounce, platinum slipped 0.6% to $915.59, and palladium fell 1.1% to $897.14.