Gold prices rose to a new record high above $4,100.0000 per ounce in Asian trading on Tuesday, as renewed tensions between the United States and China prompted investors to flock to safe havens. Silver also rose to new highs.
Spot gold was trading up 1.3% at $4,164.8000 per ounce by 07:17 Saudi time, after hitting a new record high of $4,169.6600 earlier in the session. U.S. gold futures rose 1% to $4,175.9200.
The latest escalation came after US President Donald Trump threatened to impose 10% tariffs on Chinese imports in retaliation for Beijing's restrictions on exports of vital minerals used in electronics and defense.
Trump later softened his stance, writing on social media that Don't worry about China and that the United States does not seek to harm China.
Treasury Secretary Scott Besant told Fox Business Network that a meeting between Trump and Chinese President Xi Jinping is still planned for later this month in South Korea, suggesting some hope for dialogue.
China's Ministry of Commerce confirmed on Tuesday that working-level discussions with the United States are continuing this week, vowing to fight to the end against the US measures.
The mixed signals highlighted the uncertainty fueling gold's rally. The US dollar declined slightly, further supporting the precious metal.
Silver prices jumped 2% to $53.4700 per ounce, also hitting a new record high. Platinum futures rose 1.2% to $1,704.5500.
