The price of gold hit a new record on Wednesday, with an ounce reaching $3,318 as the US initiates new moves in the trade conflict with China.
After hitting an all-time high, the price of gold currently stands at around $3,312.60 as of 0820GMT.
The ounce of gold rose more than 2.6% on Wednesday to set a new record after investors’ worries increased over further escalation of the trade conflict between the world’s two biggest economies.
The surge in gold price intensified after US President Donald Trump announced his “reciprocal” tariffs on more than 180 countries on April 2.
China was the first country to react to the US tariff increases and responded at the same rate. As a result of the tariff showdown between the two countries, the US raised its tariffs on China to 145% and China raised its tariffs on the US to 125%.
While the Washington administration postponed the reciprocal tariffs imposed on other countries for 90 days, tariffs against China came into force.
Meanwhile, the US government banned Nvidia’s H20 chips’ exports to China.
In the latest move, the White House announced late Tuesday that China now faces up to 245% tariffs due to its retaliatory actions.