Gold prices rose surpassed the $3,300 for the first time on Wednesday, as investors sought safe-haven assets after U.S. President Donald Trump ordered a probe into potential new tariffs on U.S. critical mineral imports.
Spot gold was up 2.7% to $3,314.29 an ounce as of 0825 GMT, after hitting a record high of $3,317.90 earlier in the session.
U.S. gold futures gained 2.8% to $3,330.30.
Trump on Tuesday ordered a probe into potential new tariffs on all U.S. critical minerals imports in an attempt to push back on industry leader China, on top of reviews into pharmaceutical and chip imports, further escalating global trade tensions.
“Trump’s trade war shows no signs of easing after the President ordered a probe into critical minerals, semiconductors and pharmaceuticals, sparking a fresh move towards safe havens and out of stocks,” said Ole Hansen, head of commodity strategy at Saxo Bank.
“Recent price upgrades from major banks have given investors the confidence to continue to buy.”
Gold climbs as softer dollar, tariff tensions buoy demand
ANZ on Wednesday raised its year-end gold price forecast to $3,600 per ounce and six-month forecast to $3,500.
The U.S. Commerce Department announced on Tuesday that new export licensing requirements will be imposed on Nvidia’s H20 and AMD’s MI308 artificial intelligence chips, as well as their equivalents, to China, leading to a sell-off in Asian stocks.
Amid escalating tariffs imposed by Trump, China on Tuesday directed its airlines to cease all further deliveries of Boeing jets.
The dollar eased 0.5% against its rivals, making gold cheaper for overseas buyers.
“We are upgrading (gold forecast) to $3,500 supported by a world in disarray where investors seek shelter amid recession fears, geopolitical tensions, fiscal debt concerns and central banks diversifying their holdings away from USD and dollar-based assets,” Hansen said.
Gold is seen as a hedge against global instabilities.
Spot silver rose 2.4% to $33.07 an ounce, platinum fell 0.3% to $957.05 and palladium dipped 0.1% to $970.43.
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