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Gold prices surged in Asian trading on Thursday, bouncing back from recent losses as ongoing uncertainties in the U.S.-China trade conflict and new tensions between Russia and Ukraine boosted demand for safe-haven assets.

After hitting record highs earlier this week, gold had briefly declined following comments from U.S. President Donald Trump about the possibility of reducing trade tariffs on China. However, confusion surrounding his remarks and less optimistic statements from other officials caused the drop to be short-lived.

Traders remained wary of the dollar and U.S. Treasuries, maintaining gold and the Japanese yen as preferred safe-haven investments. Spot gold rose by 1.3%, reaching $3,331.34 per ounce, while June gold futures climbed 1.4% to $3,341.25/oz by 01:37 ET (05:37 GMT).

JP Morgan forecasted that gold prices could reach as high as $4,000 per ounce by next year. Gold remained close to its recent record high of $3,500/oz, as investor demand for bullion as a haven persisted. This was supported by a significant decline in the dollar in recent weeks, driven by mounting uncertainty about the U.S. economy and the ongoing trade war with China.

Trump's comments about potentially reducing the 145% tariffs on China were seen as conditional on China returning to the negotiating table, but Beijing showed little interest in engaging. China retaliated with 125% tariffs on U.S. goods and showed no signs of easing its stance.

Other members of the Trump administration also dampened optimism about a U.S.-China trade deal. Treasury Secretary Scott Bessent warned that negotiations could be a prolonged process, with tariff reductions likely needed before any progress could be made.

Traders remained cautious about the impact of these tariffs, even as reports suggested Trump might grant exemptions for automakers, but this failed to provide significant support for the dollar or Treasuries.

Other precious metals saw mixed results on Thursday, with platinum futures rising 0.1% to $979.75/oz, while silver futures fell 0.4% to $33.390/oz. In industrial metals, copper futures on the London Metal Exchange dropped 0.1% to $9,371.35 per ton, while U.S. copper futures held steady at $4.8348 per pound.

Meanwhile, safe-haven demand was further bolstered by escalating tensions in Russia-Ukraine ceasefire negotiations. Moscow launched a deadly drone and missile attack on Kyiv, and U.S. Vice President JD Vance warned that the U.S. might withdraw from the ceasefire talks, with several top U.S. officials pulling out of discussions in London.

Paraphrasing text from "Investing.com"all rights reserved by the original author