Gold’s wild ride continued on Tuesday, with prices surging to a record $4,179 in Asian trading before plunging back to $4,090. By 10:30 GMT, dip buyers had piled back in, lifting the metal to $4,139 in yet another highly volatile session.
Renewed US-China tensions continue to drive the surge as traders sought refuge in safe-haven assets. Silver joined the rally, hitting fresh highs of its own.
The escalation came after US President Donald Trump threatened 100% tariffs on Chinese imports in retaliation for Beijing’s restrictions on exports of critical minerals vital to electronics and defence industries.
Trump later toned down his rhetoric, assuring markets to “not worry about China” and stressing that Washington was not seeking confrontation. US Treasury Secretary Scott Bessent told Fox Business Network that a meeting between Trump and Chinese President Xi Jinping remained on schedule for later this month in South Korea, offering some hope for dialogue.
China’s Ministry of Commerce confirmed that working-level talks with the US are ongoing this week but vowed to “fight till the end” against any new trade measures.
The back-and-forth highlights just how nervous investors remain. A slightly weaker dollar offered additional support for gold, which continues to trade at elevated levels despite sharp intraday swings.