Gold gains as China's retaliatory tariffs against US re-ignites safe-haven flows

Gold gained on Friday after reaching a record high in the previous session, as investors turned to the safe-haven asset amid heightened global trade conflict following China's retaliation with new tariffs against US. President Trump's extensive levies.Spot gold firmed 0.

5 per cent at US$3,128.76 an ounce as of 1116 GMT, after falling one per cent earlier in the session, while US gold futures were up 0.9 per cent at US$3,151.



20.Spot prices hit a record US$3,167.57 on Thursday as investors rushed for safe-haven assets after Trump announced tariffs against major trading partners.

They remain on track for a weekly gain.Despite volatility, "gold is still a safe haven place for many investors ..

. I think the downside could be limited from here and I expect it to hold about US$3,080 for now," Matt Simpson, a senior analyst at City Index said.China's finance ministry said it will impose additional tariffs of 34 per cent on all US goods from April 10.

This comes a day after Trump said he would impose a 10 per cent baseline tariff on all imports to the US and higher duties on some of the country's biggest trading partners.Nitesh Shah, head of commodities and macroeconomic research for Europe at Wisdom Tree, said gold could get closer to US$3,600 by the first quarter of 2026.US non-farm payrolls data is due at 1230 GMT, while Fed Chair Jerome Powell is also due to speak later in the day.

"Market analysts are increasingly speculating that Powell might strike a more dovish tone, which could provide support to the markets," Zain Vawda, a market analyst at MarketPulse by OANDA, said.Gold is known as a hedge against inflation, but higher rates could dampen its appeal as it yields no interest.On the physical front, demand for gold ticked up in China, although customers in India refrained from purchases, anticipating a price drop.

Spot silver declined 1.5 per cent to US$31.40 an ounce and was headed for its worst week since December 2023.

Platinum lost 1.1 per cent to US$941.90 and palladium slipped 0.

6 per cent to US$922.75.© New Straits Times Press (M) Bhd.