Gold prices traded above the US$3,000 mark during Tuesday's Asian session, buoyed by escalating trade tensions and a lower United States dollar, as dip-buying resumed following a three-day selloff.
By 3:50 pm AEST (5:50 am AEDT) spot gold prices were up by $20.84 or 0.7% to $3,002.70 per ounce.
The rebound has brought the yellow metal back into bullish territory, with buyers capitalising on a softer Greenback and subdued U.S. Treasury yields.
The renewed upswing in gold was sparked by mounting concerns over global trade stability. On Monday, President Donald Trump threatened an additional 50% tariff on Chinese imports, compounding the existing 10% across-the-board levy as well as targeted 34% “reciprocal” tariffs, which are scheduled to take effect on 9 April.
In response, China’s Commerce Ministry warned that it will "fight to the end" if Trump follows through with the hikes.
The heightened trade tensions have reinforced gold’s appeal as a safe-haven asset, especially as China introduces new support measures to stabilise markets and boost domestic lending, helping to stabilise sentiment globally.
