Gold Rises as Dollar Stumbles Amid Tariff Tensions

By Anjana Anil and Anushree Mukherjee

(WELLNESSINVESTIGATOR) - On Wednesday, gold prices increased due to a weaker dollar and growing anticipation of U.S. President Donald Trump’s tariffs coming into play. As global trade tensions heightened and concerns about an economic downturn intensified, many investors turned to the safety of gold, seeking refuge from market uncertainties.

Bullion spot increased by 0.6% to reach $3,000.13 per ounce by 02:50 GMT. Meanwhile, U.S. gold futures climbed 0.8%, settling at $3,014.40.

As tariffs were about to be implemented, the dollar weakened, causing gold priced in dollars to become more affordable for international purchasers.

Trump increased the tariffs on Chinese goods to 104% in response to Beijing’s reciprocal trade measures, alleging that China was devaluing its currency to mitigate the impact of these taxes. China rejected this pressure as extortion, asserting its determination to “resist until the very end.”

As scheduled, country-specific tariffs will go into effect at 12:01 a.m. Eastern Time (0401 GMT).

"The depreciation of the dollar due to concerns over tariffs facilitated gold’s return to above the $3000 mark," stated Tim Waterer, the chief market analyst at KCM Trade.

Owing to worldwide economic expansion and unpredictable inflation factors, gold continues to be poised for potential record-breaking levels despite encountering some obstacles in its advancement throughout the past week.

Nevertheless, advances in non-yielding gold were capped as the U.S. benchmark 10-year note yield reached more than a one-week peak.

Gold reached an all-time peak of $3,167.57 on April 3rd, and this surge to unprecedented heights has led analysts to draw parallels with the previous instance when geopolitical and financial instability primarily fueled record-breaking prices—specifically, during the Iranian Revolution in 1980.

World Gold Council statistics revealed that gold-backed exchange-traded funds saw their biggest quarterly influx in three years during the January-March period of 2025.

Markets are waiting for the minutes of the U.S. Federal Reserve's latest policy meeting, expected later in the day, and U.S. consumer price index data on Thursday and the producer price index on Friday.

Silver slipped 0.1% to trade at $29.80 per ounce, platinum dropped 0.4% to reach $917.55, and palladium decreased by 0.2% to stand at $905.25.

(Reported by Anjana Anil and Anushree Mukherjee in Bengaluru; Edited by Sumana Nandy and Mrigank Dhaniwala)

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