Gold prices surged following a significant jump, prompted by uncertainty surrounding US President Donald Trump's trade policies. Investors sought the precious metal as a safe haven during a turbulent market. Gold prices increased by up to 1.6% on Thursday, approaching the previous week's record high, and had risen by 3.3% the day before. The weakening US dollar also supported gold's upward trend.

The initial rise in gold prices occurred after the imposition of US tariffs on numerous trading partners, which caused market disruptions and concerns about a global economic downturn. However, Trump later announced a 90-day halt to increased tariffs on 56 countries and the European Union, reverting to a 10% baseline tariff instead.

The volatility in the market reflected the uncertainty caused by Trump's tariff decisions. The trade tensions between the US and China escalated, with Trump raising tariffs on Chinese goods to 125%, while Beijing retaliated with an 84% tariff on Thursday. These actions raised fears of a prolonged trade war between the world's two largest economies.

Following Trump's announcement of pausing further tariffs, the markets experienced a rebound, fueling a surge in US stocks and a positive outlook for gold. The ongoing uncertainty surrounding trade policies contributed to gold's 19% increase this year. Additionally, expectations of monetary easing by the Federal Reserve and central bank purchases further supported gold prices.

Gold prices reached $3,117.15 an ounce in London, marking a 1.1% increase. The Bloomberg Dollar Spot Index declined for the second consecutive day. Other precious metals such as silver and platinum remained stable, while palladium experienced a slight decrease.