Gold prices soared to record levels in Asian markets on Wednesday, fueled by rising U.S.-China trade tensions and increased caution in the market following Nvidia’s unexpected $5.5 billion impairment disclosure.

Gold Surges to Unprecedented Heights

• Spot Gold Price: $3,283.63 per ounce (+1.7%)

• June Gold Futures Price: $3,299.52 per ounce

This surge represents a historical high for gold, reaffirming its reputation as a safe haven in times of global financial instability.

Key Factors Driving the Increase

1. Intensified U.S.-China Trade Disputes

Recent remarks from U.S. President Trump regarding potential tariffs on electronics and pharmaceuticals have amplified market volatility. The administration has enacted a 145% cumulative tariff on imports from China, triggering a 125% retaliatory tariff from China on U.S. goods.

While some electronics were granted temporary exemptions and other nations received a 90-day tariff waiver, the ongoing uncertainty continues to unsettle investors.

2. Nvidia’s Several Billion Dollar Write-Down

Nvidia revealed a $5.5 billion charge due to unsellable H20 AI chips linked to recent U.S. export restrictions. This led to a broad sell-off in tech stocks such as AMD, Intel, and TSMC, heightening market risk aversion.

3. Weak U.S. Dollar and Treasury Sell-Off

As geopolitical and economic concerns mount, investors are steering clear of U.S. Treasuries, resulting in a weaker dollar, which consequently drives gold prices higher. The wavering confidence in U.S. economic stability has increased the demand for physical assets like gold.

Additional Market Insights and Data Resources

For those interested in tracking gold and commodity market performance, check out these essential resources:

• Commodities API: Monitor daily spot and futures pricing for gold, silver, oil, and more.

• Economics Calendar API: Stay informed about inflation reports, interest rate decisions, and important macroeconomic events influencing market sentiment.

Market Outlook

In light of escalating trade tensions worldwide and amplifying regulatory uncertainties, gold is showing remarkable resilience. While short-term fluctuations are probable, the larger trend indicates continued strength in gold as investors hedge against inflation and geopolitical risk.