Gold prices surged sharply on April 16, 2025, as investors fled to safe-haven assets amid escalating geopolitical and economic uncertainties. At 2:41 PM IST, spot gold (XAU/USD) was trading at $3,304.95, up $77.34, marking a 2.40% increase in value.
The rise in gold comes in direct response to deepening trade tensions between the United States and China. The Trump administration recently announced sweeping tariff hikes, lifting duties on certain Chinese exports to as high as 245%, from the previous 145%, under its “Fair and Reciprocal Plan.” A 10% baseline tariff now applies to most imports, while nations with large trade surpluses face even harsher levies.
China responded sternly, warning that it is “not afraid” of a trade war but advocates dialogue based on “equality, respect, and mutual benefit.” This hardening of positions has amplified fears of a prolonged economic standoff between the two global powers, leading to widespread risk-off sentiment in financial markets.
As equity markets across Asia, Europe, and the US reel under pressure, gold’s appeal as a traditional store of value has risen significantly. Analysts note that rising inflation concerns, coupled with a slowdown in global trade, could push gold prices even higher in the near term.
With uncertainty looming large, gold appears to be reaffirming its role as a reliable hedge during turbulent geopolitical phases.
