Gold price increases at record high: trade tension between the USA and China!

Gold price increases at record high: trade tension between the USA and China!

On April 16, 2025, investors reached a highlight in the gold market because the price for a troy ounce of gold has increased to $ 3,291 (2,893 euros). This has been an increase of around 60 dollars since the previous night. According to vienna.at this is done against the background of an exacerbated trade war between the USA and China. In these uncertain times, investors are increasingly looking for safe ports such as gold.

President Donald Trump remains hard in the customs dispute with China and emphasizes that the initiative for an agreement is on Beijing. He compares China with other countries, but highlights the importance and size of the Chinese economy. While the US government tightens the restrictions on deliveries from AI chips to China, concerns remain about the economy. The hope of an upcoming agreement between the two nations.

economic prospects

Although China's economy grew stronger than expected in the first quarter, real economic developments could be distorted by advancement effects before the US tariffs. Experts expect the situation to possibly change from the second quarter. The existing economic worries show that a stabilized economic basis is urgently necessary.

The trade war between the USA and China has been underway since 2018, triggered by US criminal duties to Chinese products that were originally enacted to reduce the trade deficit. In 2017, the United States imported the value of $ 505.6 billion from China, while they only exported goods worth $ 130.4 billion, which shows a considerable trade difference. merkur.de reports on the allegations to China, including the subsidization of companies and dumping prices, which further heat the conflict.

consequences and reactions

The United States reacted to Chinese practices with punitive tariffs, which led to an increase in prices for Chinese goods in the United States. For his part, China took measures and imposed its own tariffs on US products. The ongoing dispute has caused economic damage and diplomatic tensions, including the closure of consulates in Houston and Chengdu. So far there is no satisfactory solution, and negotiations on conflict resolution are difficult.

The effects of the trade war can also be felt on the stock markets, since both the US and the Chinese markets suffer from tensions. In addition, many US companies plan to relocate their production from China, which further complicates the economic landscape. Despite the serious problems in the trade deficit that exists between the two countries, there is a desire for a solution on both sides, even if the pandemic also tightens the economic challenges for the USA.