FX.co ★ Gold Extends Gains

Gold prices approached $3,090 per ounce on Thursday, further advancing more than 3% from the previous day's increase. This uptick is largely attributed to heightened demand for safe-haven assets amid escalating US-China tensions. President Trump announced an immediate tariff hike to 125% on Chinese imports, a move that followed China's decision to raise duties on US goods to 84%. This tit-for-tat tariff conflict between the world's two largest economies is currently overshadowing a broader trend toward reduced trade hostilities, as the US has temporarily lowered tariffs to 10% for a 90-day window to facilitate trade negotiations with various nations. Concurrently, the financial markets are evaluating the latest Federal Open Market Committee (FOMC) minutes, which revealed widespread concerns about rising inflation and decelerating economic growth. Investors are keenly awaiting the release of US Consumer Price Index (CPI) and Producer Price Index (PPI) data on Friday, which are expected to provide more clarity on the Federal Reserve's interest rate strategy. In a related development, the World Gold Council disclosed that gold-backed exchange-traded funds (ETFs) experienced inflows totaling 226.5 metric tons, equivalent to $21.1 billion, in the first quarter of the year.