Gold recovers despite possible US-China trade deal
US treasury secretary says high tariffs between the countries are unsustainable and must be reduced before talks can proceed
24 April 2025 - 08:10
byAnmol Choubey
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Bengaluru — Gold prices jumped more than 1% on Thursday on bargain buying, a day after the bullion hit a one-week low amid optimism over the US-China trade deal.
Spot gold rose 1.2% to $3,326.42/oz by 4.53am GMT. US gold futures gained 1.3% to $3,337.50.
Non-yielding bullion, traditionally seen as a hedge against global instability, hit a record high of $3,500.05 on Tuesday but fell below the $3,300 level on Wednesday.
“The kind of volatility we’re seeing this week is being driven by technicals and headline risk. But the fundamentals are strong, so dip buying is effectively a function of investors moving in on the basis of the bigger picture,” Capital.com financial market analyst Kyle Rodda said.
US treasury secretary Scott Bessent said on Wednesday that the excessively high tariffs between the US and China were unsustainable and should be reduced before trade negotiations could proceed but said President Donald Trump would not unilaterally cut tariffs on Chinese imports.
Meanwhile, Trump was planning to spare carmakers from some tariffs after intense lobbying by industry executives over recent weeks, a report said.
“We sustain an uptrend until the Trump administration really backs away from its trade policy,” Rodda said.
The International Monetary Fund said on Wednesday the tariffs would slow growth and push debt higher across the globe.
The US economic growth would surpass the IMF’s revised estimate of 1.8%, down from 2.7% in January, if the Trump administration’s policies were implemented, Bessent said.
The dollar index fell 0.2% against its peers, making greenback-priced bullion cheaper for overseas buyers.
Spot silver fell 0.5% to $33.37/oz, platinum was down 0.5% at $967.45 and palladium lost 0.7% to $937.48.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold recovers despite possible US-China trade deal
US treasury secretary says high tariffs between the countries are unsustainable and must be reduced before talks can proceed
Bengaluru — Gold prices jumped more than 1% on Thursday on bargain buying, a day after the bullion hit a one-week low amid optimism over the US-China trade deal.
Spot gold rose 1.2% to $3,326.42/oz by 4.53am GMT. US gold futures gained 1.3% to $3,337.50.
Non-yielding bullion, traditionally seen as a hedge against global instability, hit a record high of $3,500.05 on Tuesday but fell below the $3,300 level on Wednesday.
“The kind of volatility we’re seeing this week is being driven by technicals and headline risk. But the fundamentals are strong, so dip buying is effectively a function of investors moving in on the basis of the bigger picture,” Capital.com financial market analyst Kyle Rodda said.
US treasury secretary Scott Bessent said on Wednesday that the excessively high tariffs between the US and China were unsustainable and should be reduced before trade negotiations could proceed but said President Donald Trump would not unilaterally cut tariffs on Chinese imports.
Meanwhile, Trump was planning to spare carmakers from some tariffs after intense lobbying by industry executives over recent weeks, a report said.
“We sustain an uptrend until the Trump administration really backs away from its trade policy,” Rodda said.
The International Monetary Fund said on Wednesday the tariffs would slow growth and push debt higher across the globe.
The US economic growth would surpass the IMF’s revised estimate of 1.8%, down from 2.7% in January, if the Trump administration’s policies were implemented, Bessent said.
The dollar index fell 0.2% against its peers, making greenback-priced bullion cheaper for overseas buyers.
Spot silver fell 0.5% to $33.37/oz, platinum was down 0.5% at $967.45 and palladium lost 0.7% to $937.48.
Reuters
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