Gold hits record high on weak dollar

22/04/2025 03:33 AST

Gold touched a record high on Monday as the dollar sank to a three-year low and trade war concerns between the United States and key trading partners stirred recession fears.

Spot gold advanced 1 percent to $3,361.53 an ounce. US Gold futures firmed 1.4 percent to $3,375.90.

Spot silver added 0.1 percent to $32.63 an ounce, platinum gained 0.2 percent to $969.20, while palladium fell 0.3 percent to $959.20.

With several markets still closed for the Easter holiday, business was limited ahead of a week that will see the release of key data that should give an insight into the impact of the US president's trade war.

Several nations have moved to cut a deal with Washington to stem the worst of the White House's levies, with Japan the highest-profile economy, while US Vice President JD Vance arrived in India on Monday for talks.

South Korea's finance and trade ministers will hold high-level trade talks in Washington this week, Seoul said.

However, China warned governments on Monday not to seek an agreement that compromised Beijing's interests.

While the rest of the world has been slapped with a blanket 10 percent tariff, China faces levies of up to 145 percent on many products. Beijing has responded with duties of 125 percent on US goods.

"Appeasement will not bring peace, and compromise will not be respected," a commerce ministry spokesperson said in a statement.

"To seek one's own temporary selfish interests at the expense of others' interests is to seek the skin of a tiger," Beijing said.

That approach, it warned, "will ultimately fail on both ends and harm others".

Top Chinese diplomat Wang Yi also called on Monday for "openness, inclusiveness, mutual benefit and win-win" and condemned "any form of unilateralism and trade protectionism".

The remarks come after Trump said on Thursday the United States was in talks with China on tariffs, adding that he was confident the world's largest economies could make a deal to end the bitter trade war.

"Yeah, we're talking to China," he said. "I would say they have reached out a number of times." "I think we're going to make a very good deal with China."

Still, Washington this month closed a duty-free exemption for small parcels from China, a move that appeared to be designed to target low-cost online retailers such as Temu and Shein.

Global shipping giant DHL said it will "temporarily" suspend from Monday the delivery of parcels worth more than $800 from businesses to individuals in the United States.