Gold prices surged to fresh record highs during Monday's Asian deals, as escalating tensions between the United States and China drove safe-haven demand, extending last week’s sharp rebound.
By 3:45 pm AEDT (4:45 am GMT), spot gold climbed $40.78, or 1%, to US$4,057.43 per ounce.
The metal had already gained 1% on Friday after investors sought refuge from heightened geopolitical and trade uncertainty.
The rally followed President Donald Trump’s announcement of 100% tariffs on all Chinese imports, alongside new export controls on U.S.-made critical software effective from 1 November.
The measures were introduced in retaliation to Beijing’s recent tightening of export restrictions on rare earth minerals and related technologies, and its ban on Chinese nationals engaging in unauthorised mining abroad.
However, the precious metal briefly pared gains after investors reacted to Trump’s more conciliatory comments late Sunday, where he hinted at the possibility of renewed dialogue with Beijing. “Don’t worry about China, it will all be fine!” Trump said.
The U.S. dollar, meanwhile, was little changed as traders weighed the impact of the looming tariff standoff on global trade and inflation expectations.
Looking ahead, investors are awaiting the release of the U.S. consumer price index (CPI) report on Friday, 24 October, which will provide fresh insight into inflation trends and could influence expectations for the Federal Reserve’s next policy decision.
