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Gold prices have surged to new heights as investors flock to safe-haven assets amid escalating trade tensions between the United States and China. The recent move by President Trump’s administration to raise tariffs on China to 125% has led to significant gains for the precious metal’s price in today’s trading session.

Gold Prices Hit Record Highs

As of 12:01 pm EST on April 10, 2025, gold is trading at $3,158.055 per troy ounce, marking a substantial daily gain of $76.055 (2.47%). The precious metal is performing near the upper end of its daily trading range ($3,071-$3,175), indicating strong bullish momentum.

This follows what analysts described as the “biggest daily gain since October 2023” on the previous day. Trading activity remains robust with the market currently open and showing continued interest from investors seeking financial security during volatile market conditions.

Trade War Between China and US Among Key Drivers Behind Gold’s Rally

The primary catalyst behind gold’s impressive rally is the intensifying trade conflict between the United States and China. President Trump has increased tariffs on Chinese goods to 125% (up from 104%), while China has retaliated with an 84% levy on US imports. Despite announcing a 90-day pause on tariffs for other countries, the bilateral tensions continue to fuel economic uncertainty.

Additionally, the Federal Reserve’s recent meeting minutes revealed policymakers’ concerns about “simultaneous risks of higher inflation and slower growth,” with some noting that “difficult trade-offs” may lie ahead. Markets are currently pricing in 84 basis points of interest rate cuts by year-end, creating an environment where gold traditionally thrives.

Industry experts remain overwhelmingly bullish on gold’s prospects. With gold already up over 18% year-to-date, investors continue to view the precious metal as an essential portfolio component during these turbulent economic times.

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