FX.co ★ Gold Surges to Fresh High

On Friday, gold prices soared beyond $3,200 per ounce, reaching an unprecedented high. This surge was fueled by a decline in the US dollar's strength and an increased demand for safe-haven investments, as tensions between the US and China over trade escalated. On Thursday, it was announced that tariffs on Chinese imports had jumped to 145%, following the imposition of an additional 125% levy on top of a previous 20% duty. This development overshadowed President Trump's decision to implement a 90-day suspension on increased tariffs for the majority of other nations. The escalating trade conflict between these two major global economies has raised concerns about potential negative economic impacts. Additionally, US consumer prices showed an unexpected decline in March, prompting traders to speculate that the Federal Reserve might resume rate cuts in June, potentially reducing its policy rate by a full percentage point by the end of the year. Nevertheless, inflation risks continue to lean upward after Trump's reinforcement of tariffs on China. For the week, gold is poised to achieve its strongest performance since last November.