India, April 10 -- Gold prices surged by more than one per cent on Thursday as the investors flocked to the bullion after the United States hiked tariffs on China.

According to Reuters, spot gold was worth $3,119.18 per ounce at 3 am (GMT). It recorded its best day since October 2023, while American gold futures climbed 1.8 per cent to $3,135.50.

Trump hiked duties on China to 125%, effective immediately, after the Asian country announced plans to retaliate with an 84% tariff to start Thursday.

However, Trump decided to temporarily lower the hefty duties he recently imposed on several countries.

"If we enter a slow growth period, which is our base case, we think rates will eventually head lower and push gold higher since inflation wor...