Gold Prices up as Trump Raises Tariffs on China to 125%

The price of gold was up by more than one percent on April 10 as investors rushed in to buy the yellow metal after the US increased tariffs on China.

As per Reuters, the value of spot gold came to $3,119.18 per ounce at 3 am (GMT). This was the best performance by the commodity since October 2023, while American gold futures surged 1.8% to $3,135.50.

Trump hikes duty to 125%

US President Donald Trump hiked tariffs on China to the tune of 125%. However, he took a step back by pausing hefty duties on several countries for a period of 90 days except China.

“If we enter a slow growth period, which is our base case, we think rates will eventually head lower and push gold higher since inflation worries will still be with us for much of the year due to tariff impacts,” Marex analyst Edward Meir told Reuters.

“Eventually we do see $3,200 possibly by month-end, if not earlier.”

Often considered a hedge against global uncertainties and inflation, the price of yellow metal surged more than 18% in 2025, largely driven by Trump's tariff plans, expectations of interest rate cuts by the Federal Reserve, geopolitical tensions in the Middle East and Ukraine, strong central bank buying, and increased investments in gold-backed exchange-traded funds.