Gold Climbs Back Above $4,000 on US-China Trade Tensions
Spot gold surged past the $4,000 mark on Friday, edging closer to the all-time high of $4,059 hit on Wednesday, fueled by renewed tensions between Washington and Beijing after US President Trump indicated there was no reason to meet with China’s Xi Jinping in two weeks in South Korea as planned, while preparing to increase tariffs on Chinese imports.
Meanwhile, Israel’s government ratified a ceasefire with Hamas on Friday, setting the stage to halt hostilities in Gaza within 24 hours. Gold has risen roughly 52% this year and was on track for a 3% weekly gain—its eighth consecutive advance—driven by ongoing geopolitical uncertainty, global economic concerns, and rising expectations of further US interest rate cuts.
Additional support came from slowing global growth, persistent inflation, and continued diversification away from US assets and the dollar. On the monetary policy front, the Fed is widely expected to implement 25bps rate cuts at each of its remaining meetings this year.
Source: Tradingeconomics
