US-China trade war spurs record-breaking rally in gold

Gold prices climbed 1 per cent on Wednesday, continuing their record rally as investors sought the safe-haven asset due to concerns about the escalating US-China trade war and its impact on economic growth, reports Reuters.

Spot gold was up 0.9 per cent at $2,868.48 per ounce by 1221 GMT, after hitting a record high of $2,877 earlier in the session. US gold futures gained 0.6 per cent to $2,892.20 per ounce.

China this week imposed tariffs on US imports in retaliation against newly introduced US duties on Chinese goods, fuelling the trade war between the world's two largest economies.

Meanwhile data from the World Gold Council showed global gold demand rose 1 per cent to a record 4,974.5 metric tons in 2024, driven by higher investment and increased central bank purchases.

Spot silver rose 0.5 per cent to $32.25 per ounce and platinum gained 1.6 per cent to $979.45.