Gold Price Recovers on Renewed US-China Trade Tensions

Gold Price Rebounds Amid US-China Trade Tensions

XAU/USD Recovers as Safe-Haven Demand Rises

Gold price (XAU/USD) recovered some early session losses on Friday, climbing back toward $3,305 during North American trading hours, although still down 0.4% for the day. The rebound comes amid renewed trade tensions between the United States and China, triggered by fresh comments from US President Donald Trump.

Trump Accuses China of Breaching Trade Deal

In a post on Truth Social, Trump accused China of “completely breaching” its trade agreement with the US. This unexpected escalation in rhetoric has reawakened geopolitical fears, fueling demand for safe-haven assets like gold.

"The bad news is China, not surprisingly to many, HAS COMPLETELY BREACHED ITS CONTRACT WITH US," – Donald Trump

Inflation and USD Recovery Also in Focus

Gold’s movement was also influenced by macroeconomic data. The US core Personal Consumption Expenditures (PCE) inflation rose 2.5% YoY in April, in line with market expectations, indicating moderate inflation pressure.

Meanwhile, the US Dollar Index (DXY), which measures the USD against a basket of six currencies, climbed to 99.40, paring earlier losses and reducing some of gold’s upside momentum.

Outlook: Trade Fears May Support XAU/USD

With geopolitical tensions heating up and inflation trends stabilizing, investors may continue to favor gold in the near term as a hedge. Market participants will be closely watching for further developments in US-China relations and Fed policy clues.

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