- Markets Insider
- China announced a 25% tariff on $50 billion worth of US goods, including aircraft, autos and soybeans.
- Gold prices spiked nearly 1% following the news.
- Follow gold prices in real time here.
Gold prices jumped early Wednesday as nervous investors flocked to the safety of the yellow metal on the back of heightening trade war fears.
Gold was up 1.05% to $1,346.76 at 8:38 a.m. ET. A close above $1,358.00 would be the highest since August 2016.
The spike came shortly after China’s Ministry of Commerce announced a 25% tariff on $50 billion worth of US exports. Among the 106 affected products are some of the biggest American exports to China, including aircraft, autos and soybeans.
The tariffs are meant to meant to penalize the US for its recently-announced taxes on Chinese steel and aluminum. The Trump administration, in attempt to punish China for alleged intellectual property theft, published a list on Tuesday night of about 1,300 additional Chinese exports that could be affected by a 25% tariff.
Gold prices are up 3.3% this year.