Gold Surges Above $3,300 To Record High As US-China Trade War Escalates With 245% Tariff

Gold prices surged to an unprecedented high above $3,300 per ounce on Wednesday as stock market futures declined amid escalating trade tensions between the United States and China.

What Happened: Spot gold jumped 1.72% to $3,306.90, extending its remarkable 23.45% rally since President Donald Trump‘s January inauguration, when the precious metal traded near $2,678.

The rally comes as futures markets signal trouble ahead for equities. Nasdaq-100 futures fell 1.06% to 18,758.75, while S&P 500 futures declined 0.42% to 5,405.25. Dow Jones Industrial Average futures showed minimal loss, down 0.09% to 40,536.

The White House announced late Tuesday that Chinese imports now face tariffs of up to 245% following a series of retaliatory actions between the two economic powers. The tariff war has intensified dramatically since Trump took office, beginning with a 20% levy that has progressively increased through multiple rounds of escalation.

Why It Matters: “China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions,” according to the White House fact sheet. The latest increase focuses particularly on critical minerals and derivative products that the administration deems essential for U.S. defense capabilities and technological innovation.

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The market reaction underscores investor concerns about economic growth prospects as the two largest economies continue their confrontation, driving capital toward traditional safe havens like gold while adding pressure to technology stocks that depend heavily on global supply chains.

The Dow Jones fell by approximately 156 points to close at 40,368.96 on Tuesday. The S&P 500, tracked by SPDR S&P 500 SPY, declined 0.17% to 5,396.63, while the Nasdaq Composite, tracked by Invesco QQQ Trust QQQ, edged down 0.05% to 16,823.17.

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