Gold prices increased on April 10 as investors rushed to gold at the time the US increased tariffs on China despite a postponement of the 9-day tariffs on other partners.
Spot gold prices rose 1.2% to $3,119.18 an ounce as of 3:00 a.m. on April 10, GMT. In the previous trading session, gold prices recorded the best trading day since October 2023.
Meanwhile, US gold futures on April 10 increased 1.8% to $3,135.50.
On April 9, US President Donald Trump announced an increase in tariffs on Chinese imports from 104% to 125%.
China is one of the top gold consuming countries and the imposition of additional tariffs has escalated an already tense trade war.
The decision to increase tariffs on China was announced at the same time that President Trump temporarily postponed the imposition of tariffs on a number of countries and territories.
If the economy slows thats the main scenario were predicting interest rates could fall, and thats going to push gold prices higher, as concerns continue to hold on to inflation this year due to the impact of taxes, said Marex analyst Edward Meir.
We think gold could hit $3,200 by the end of the month, or even sooner, he predicted.
Gold has increased by more than 18% in 2025, mainly due to US President Donald Trump's tax plan, the US Federal Reserve's (Fed) interest rate cut, geopolitical tensions in the Middle East and Ukraine, strong buying by central banks and increased investment in exchange-traded funds backed by gold.
