Gold prices raced to an all-time high on Wednesday, driven by a weaker dollar, trade war tensions and concerns over global economic growth due to U.S. President Donald Trump’s tariff plans which led to safe-haven inflows.
FUNDAMENTALS
Spot gold climbed 1.1% at $3,261.79 an ounce, as of 0028 GMT, after touching a record high of $3,266.65 per ounce earlier in the session. U.S. gold futures firmed 1.2% to $3,279.20.
The dollar index eased 0.3% against its rivals, making gold more attractive for other currency holders.
Gold, traditionally viewed as a safe-haven investment during times of geopolitical and economic uncertainty, and typically thriving in a low-interest-rate environment, has hit multiple record highs this year.
Federal Register filings on Monday showed the U.S. administration is advancing investigations into pharmaceutical and semiconductor imports in a bid to impose tariffs.
Last week, Trump raised duties on China to 145%, prompting Beijing to jack up levies on U.S. goods to 125%.
Investors now await U.S. retail sales data due later in the day for insights into the economy and the Federal Reserves monetary policy plans.
“Increasing risks of a deeper recession, another turn in the geopolitical landscape, disruptions in global supply chains, fears of rising inflation along with a changing rate outlook suggest that gold will remain on strong footing in the foreseeable future,” ANZ said in a note.
ANZ raised its year-end gold price forecast to $3,600 per ounce and six-month forecast to $3,500.
Spot silver rose 0.3% to $32.40 an ounce, platinum fell 0.1% to $958.15 and palladium eased 0.1% to $970.25.
