Gold Prices Surge Amid Trade War – What to Expect Next!

Gold prices went up on Thursday because the trade war between the U.S. and China is getting worse. This happened even after President Donald Trump said there would be a 90-day break on tariffs for other countries.

Spot gold is now priced at $3,110.69 per ounce, which is a 0.9% increase, following a big rise the day before. U.S. gold futures are up by 1.5%, reaching $3,126.70. According to Nitesh Shah, a commodities expert at WisdomTree, “We are living in a world full of uncertainty, and we don’t know where this trade war will go. I believe gold prices will continue to rise this year.”

On Wednesday, Trump said he would lower tariffs on many countries but increased tariffs on China from 104% to 125% after China announced an 84% tax on U.S. goods. The U.S. Federal Reserve recently noted that the economy might face challenges like rising prices and slower growth, which could affect their decisions on interest rates.

Investors are now watching closely for data on U.S. consumer prices, as this could influence how the Fed manages interest rates. The current market expects that the Fed might lower interest rates by around 0.84% by the end of the year. Gold is often seen as a safe investment during tough economic times and does well in low-interest environments.

Gold prices have risen more than 18% since last year and are expected to keep climbing. Shah predicts that in a year, gold could reach $3,600, and it might even hit $4,000! Meanwhile, silver prices fell by 0.4% to $30.88 an ounce, platinum dropped by 0.3% to $934.70, and palladium went down by 1.3% to $920.79.