By Rahul Paswan and Anushree Mukherjee
(Reuters) – Gold prices scaled a record peak on Wednesday as a weaker dollar, escalating trade tension and concerns over global economic growth fuelled demand for safe-haven bullion.
Spot gold rose 1.7% to $3,282.88 an ounce as of 0457 GMT. It hit a fresh high of $3,290.10 per ounce earlier in the session.
U.S. gold futures gained 1.8% to $3,299.60.
“A confluence of factors such as dollar depreciation and ongoing risk aversion are working in gold’s favour,” said Tim Waterer, chief market analyst at KCM Trade.
The dollar index eased 0.5% against its rivals, making gold more attractive for other currency holders. [USD/]
Further escalating the U.S.-China trade tensions, Nvidia on Tuesday said it would take $5.5 billion in charges after the U.S. government limited exports of its H20 artificial intelligence chip to China.
Meanwhile, China ordered its airlines not to take any further deliveries of Boeing jets in response to the U.S. imposing 145% tariffs on Chinese goods.
“Gold will continue to be strong as long as there’s uncertainty,” said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.
Gold, traditionally viewed as a safe-haven investment during times of geopolitical and economic uncertainties, hit multiple record highs this year, gaining more than 25% year-to-date. [GOL/]
“We believe risk-off purchases for gold are yet to pick up,” analysts at ANZ said, raising the bank’s year-end gold price forecast to $3,600 per ounce and six-month forecast to $3,500.
Investors now await the U.S. retail sales data, due later in the day, for insights into the economy and the Federal Reserve’s policy trajectory.
Spot silver added 0.5% to $32.45 an ounce, platinum fell 0.3% to $956.80 and palladium was steady at $971.24.
(Reporting by Rahul Paswan and Anushree Mukherjee in Bengaluru; Editing by Sumana Nandy, Rashmi Aich and Sonia Cheema)
