Gold prices surged to historic highs during Wednesday’s Asian trading session, as investors sought refuge in the precious metal amid rising geopolitical tensions and fresh concerns from the tech sector. Market unease was fueled by intensifying trade frictions between the United States and China, along with a bleak earnings warning from chipmaker Nvidia.
Investors Flock to Gold as Trade War Fears Resurface
The price of spot gold leaped 1.7% to hit an all-time high of $3,283.63 per ounce, while June gold futures briefly touched $3,299.52. The rally was supported by growing global demand for safe-haven assets, particularly as the dollar weakened and U.S. Treasury yields came under pressure due to uncertainties surrounding President Donald Trump’s trade agenda.
The renewed trade tensions stemmed from Trump’s announcement of potential new tariffs on foreign electronics and pharmaceuticals. These followed a staggering 145% cumulative duty imposed on Chinese imports. In response, Beijing retaliated with its own 125% levy on U.S. goods. While electronics appeared to be excluded from the steep American tariffs, ambiguity around the scope and enforcement of Trump’s trade measures has kept markets on edge.
Investors, wary of further economic disruptions, are increasingly shifting capital into traditional safe-haven assets like gold and the Japanese yen, hedging against the possibility of deeper cross-border economic conflict.
Nvidia’s Export Restrictions Shake Tech Markets
Adding fuel to the fire, Nvidia (NASDAQ: NVDA) issued a stark warning on Tuesday, estimating a $5.5 billion impairment in its upcoming quarterly report due to newly implemented U.S. restrictions on semiconductor exports to China. The news rattled tech markets, triggering steep declines in both U.S. futures and Asian tech stocks.
These restrictions could severely limit Nvidia’s ability to operate in one of its largest markets and threaten broader access to AI development tools for Chinese firms. The move also heightens the risk of countermeasures from Beijing, deepening the global tech rift.
Precious Metals React to Market Volatility
The broader precious metals market displayed mixed reactions. Platinum dipped 0.1%, settling at $968.95 per ounce, while silver gained 0.5% to trade at $32.455 per ounce. The volatility reflects shifting investor sentiment, driven by a complex mix of trade policy developments and tech sector uncertainty.
Copper Slides Despite Promising China Data
In the industrial metals segment, copper prices edged lower even after China reported stronger-than-expected GDP growth for the first quarter. The upbeat economic data failed to offset concerns over future slowdowns tied to the escalating trade conflict.
On the London Metal Exchange, copper futures dropped 0.6% to $9,108.85 per metric ton, while U.S. copper contracts slid 0.5% to $4.5920 per pound. Analysts expect trade disputes and policy uncertainty to weigh heavily on industrial demand in the coming months, potentially dampening the outlook for growth-sensitive commodities like copper.
