Gold futures added to gains into electronic trading late Wednesday, with the June contract rising to as high as $3,111/oz, after prices had already gained 3% during regular trading for its largest one-day percentage gain in a year and a half.

Shortly before U.S. commodity markets closed, President Trump announced a 90-day pause on new tariffs for most countries while further boosting tariffs on imports from China, raising the rate to 125% effective immediately.

The tariff pause news sparked risk appetite and "knocked gold off the intraday highs, but the market remains sharply higher on the day," Zaner Metals senior metals strategist Peter Grant wrote. "The tariff pause allows for a deleveraging reprieve, removing a significant downside risk... However, Trump giveth and Trump taketh away. Who knows what this afternoon and tomorrow might bring?"

Gold also has been helped by rising expectations of a Chinese yuan devaluation, with the currency weakening to record lows overnight, SP Angel analysts said; China was a significant buyer of gold over 2024, with both consumers and the central bank boosting reserves on economic growth concerns.

Front-month Comex gold (XAUUSD:CUR) for April delivery finished +3% to $3,056.50/oz, its largest one-day percentage gain since October 13, 2023, and front-month Comex silver (XAGUSD:CUR) for April delivery ended +2.5% to $30.323/oz, its best gain since March 27.

Gold is up 16.2% YTD and 31.2% since a year ago; silver is up 4.8% YTD and 8.4% during the past year.

ETFs: (NYSEARCA:GLD), (NYSEARCA:GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (RING), (BAR), (OUNZ), (SLV), (PSLV), (SIVR), (SIL), (SILJ)

Gold joined the broader market selloff in Thursday’s, Friday’s and Monday’s sessions as investors rushed to cover losses elsewhere in the market, but it has since recouped much of its losses.

If trade tensions persist and inflation concerns return to the forefront of market worries, gold could be poised for another record-breaking rally, according to analysts at Sucden Financial.

"Ultimately gold continues to be seen as a hedge against instability here," TD Securities head of commodity strategies Bart Melek wrote. "We got a situation where tariffs are becoming a big problem, and you have inflationary expectations going higher, and that's manifested by higher yields."