 "Gold prices climb to another record high as US-China tariff war escalates")
Gold prices reached an all-time high on Wednesday (February 5), lifted by concerns over a renewed trade conflict between the United States and China after Beijing imposed tariffs on US imports in response to Washington’s latest duties on Chinese goods.
Spot gold rose 0.2 per cent to $2,848.69 per ounce as of 0253 GMT, after hitting a record high of $2,853.97 earlier in the session. US gold futures climbed 0.2 per cent to $2,879.70 per ounce.
US-China trade tariff threat sends gold soaring
The jump in the price of the bullion came after President Donald Trump said Tuesday (February 4) that he was in no rush to engage with Chinese President Xi Jinping to ease tensions between the world’s two largest economies.
The Trump administration’s tariff policies could fuel inflation, three Federal Reserve officials warned Monday (February 3). One official suggested the economic uncertainty called for a slower pace of interest rate cuts. While gold is often viewed as a hedge against inflation, higher interest rates can weigh on its appeal.
China responded to Washington’s tariffs by imposing its own duties on US goods and warning several companies, including Google, of potential sanctions.
Will gold touch $3,000 mark?
“The next major inflection point for gold is probably the $3,000 figure… China may be more encouraged to keep buying gold for reserves if the trade war escalates,” said Ilya Spivak, head of global macro at Tastylive.
Investors are watching for key US economic data this week, including the ADP employment report at 1315 GMT and Friday’s payrolls report, which could provide further insight into the state of the economy.
Other precious metals posted mixed performances. Spot silver rose 0.2 per cent to $32.15 per ounce, platinum added 0.3 per cent to $966.95, while palladium fell 0.9 per cent to $981.75.
Impact Shorts
More ShortsWith inputs from agencies
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
