FX.co ★ Gold Holds Strong After Trump Pauses Tariffs

Gold surged more than 3% to exceed $3,065 per ounce on Wednesday, following heightened U.S.-China trade tensions that spurred increased demand for safe-haven assets. Former President Trump, via Truth Social, declared a 90-day pause and a reduction to a 10% reciprocal tariff for all countries, excluding China. Concurrently, Trump announced that tariffs on Chinese imports would escalate to 125%. Treasury Secretary Scott Bessent later clarified that the 10% tariff rate would be applicable during negotiations but would not include China or certain sector-specific tariffs. In response, Beijing declared new tariffs on U.S. goods, raising them to 84% from a previous 34%, while the European Union also sanctioned retaliatory tariffs on €21 billion worth of U.S. imports. Investors were also considering the latest minutes from the Federal Open Market Committee, which indicated that Fed officials anticipate that tariffs may drive inflation higher this year, although there remains uncertainty regarding the strength or duration of this impact. Additionally, further propelling gold’s rise, the World Gold Council revealed that gold-backed ETFs experienced inflows totaling 226.5 metric tons, valued at $21.1 billion, in the first quarter.