WASHINGTON (dpa-AFX) - Extending the rebound seen over the two previous sessions, the price of gold moved sharply higher over the course of the trading day on Thursday.
Gold for April delivery soared $98.70 or 3.2 percent to a new record closing high of $3,155.20 an ounce, marking its biggest one-day percentage gain since April 2020.
Following a three-day sell-off late last week and into Monday, gold once again seems to be seen as a safe haven amid ongoing trade tensions between the U.S. and China.
While President Donald Trump announced a 90-pause on new 'reciprocal tariffs' on most countries, he excluded China from the pause and even announced he was raising the tariff on Chinese goods to 125 percent.
The U.S. and China have been engaged in a tit-for-tat exchange on trade in recent days, with China increasing its tariffs on U.S. goods to 84 percent from 34 percent after Trump previously raised the total rate on Chinese imports to 104 percent.
The continued surge by the price of gold also came amid a steep drop by the value of the U.S. dollar, with the U.S. dollar index plunging by 2.1 percent to 100.72.
In U.S. economic news, the Labor Department released a report unexpectedly showing a slight decrease by U.S. consumer prices in the month of March.
The report said the consumer price index edged down by 0.1 percent in March after rising by 0.2 percent in February. Economists had expected consumer prices to inch up by 0.1 percent.
Excluding food and energy prices, the core consumer price index crept up by 0.1 in March after rising by 0.2 percent in February. Core prices were expected to rise by 0.3 percent.
The report also said the annual rate of consumer price growth slowed to 2.4 in March from 2.8 percent in February. Economists had expected the pace of price growth to slow to 2.6 percent.
The annual rate of core consumer price growth also fell to 2.8 percent in March from 3.1 percent in February. Core price growth was expected to dip to 3.0 percent.
A separate report released by the Labor Department showed first-time claims for U.S. unemployment benefits crept slightly higher in the week ended April 5th.
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