Gold starts week at new record as US dollar falls amid tariff showdown
Photo illustration shows a 1,000-gram gold bar displayed on top of several $100 U.S. dollar bills, accessed on April 21, 2025. (Adobe Stock Photo)
Gold prices surge to a record at the start of the week in Asian markets, exceeding $3,390 per ounce, as the U.S. dollar weakens amid mounting concerns over President Donald Trump’s aggressive tariff policies and his escalating conflict with the Federal Reserve.
As of 12:00 GMT, the price of gold stood at $3,404.40 per ounce, marking a more than 2.3% daily gain. Having started the year at $2,658, gold has repeatedly broken record highs recently, posting an increase of approximately 30%—or $746—in just over four months. The sharp rise is largely attributed to heightened global uncertainty driven by the Trump tariffs.
The dollar weakened against major peers in currency markets, with the euro among the strongest performers. The U.S. Dollar Index fell by more than 1%, dropping below the 99 level, while the euro-dollar exchange rate climbed to 1.15.
China warns on trade talks, refuses to back down
Investor demand for safe-haven assets strengthened as the week began with firm statements from Beijing in response to the ongoing tariff dispute. On Monday, Chinese authorities warned other governments not to pursue agreements that could undermine China’s interests, emphasizing a refusal to back down in the trade conflict.
While most countries have faced a uniform 10% tariff, China is subject to tariffs as high as 145% on a range of products. In retaliation, Beijing has imposed duties of up to 125% on U.S. goods.
“Appeasement will not bring peace, and compromise will not be respected,” a spokesperson from the Ministry of Commerce said in a statement.
“To seek one’s own temporary selfish interests at the expense of others is like seeking the skin of a tiger. Such an approach will ultimately fail on both ends and cause harm to others.”
These remarks followed comments by Trump last Thursday, in which he stated that the United States was engaged in discussions with China. He expressed optimism about resolving the dispute, saying, “Yeah, we’re talking to China. I would say they have reached out several times. I think we’re going to make a very good deal with China.”
Gold’s upward momentum was also supported by the weakening dollar, which has come under pressure amid Trump’s public criticism of Federal Reserve Chair Jerome Powell.
The president recently lashed out at Powell for warning that tariffs would “likely lead to at least a temporary rise in inflation” and dismissed the possibility of interest rate cuts.
Trump further intensified tensions by suggesting that Powell could be removed from office, stating, “If I want him out, he’ll be out of there real fast, believe me.”
In response, Powell reaffirmed his commitment to the Federal Reserve’s independence, emphasizing that the institution’s autonomy in setting monetary policy is “a matter of law,” and confirmed he had no intention of stepping down.
