By Brijesh Patel
(Reuters) – Gold prices extended their record run on Wednesday to breach $3,300 per ounce, as a weaker dollar and escalating U.S.-China trade tensions pushed investors towards the safe-haven asset.
Spot gold climbed 3.1% to $3,327.97 an ounce as of 1:45 p.m. ET (1745 GMT), after hitting a record high of $3,332.89 earlier in the session.
U.S. gold futures gained 3.3% to settle at $3,324.50.
“Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about a global recession,” said Lukman Otunuga, senior research analyst at FXTM.
“Beyond $3,300, it’s all about psychological levels for gold prices. Bulls may target $3,400, $3,500, and upwards. However, a bout of profit-taking or positive U.S.-China trade developments could trigger a selloff.”
U.S. President Donald Trump on Tuesday ordered an investigation into possible tariffs on all U.S. critical minerals imports, marking another escalation in his dispute with global trade partners and an attempt to pressure China.
The latest flare-up of tensions between the world’s two largest economies dented sentiment in wider financial markets, sending investors towards safe-haven assets such as gold. [.N]
The dollar, meanwhile, slipped against its rivals to hold near a three-year low hit last week, making gold more attractive for other currency holders. [USD/]
Gold has risen nearly $700 this year, supported by tariff disputes, expectations of interest rate cuts and strong central bank buying.
“The rally has become a bit unhinged, leaving it at risk of corrections. However we have for more than a year now seen corrections to be shallow, with underlying bids waiting on any setbacks,” said Ole Hansen, head of commodity strategy at Saxo Bank.
U.S. economic growth appears to be slowing, with consumer spending growing modestly, a rush of imports to avoid tariffs likely to weigh on estimates of gross domestic product, and sentiment souring, U.S. Federal Reserve Chair Jerome Powell said on Wednesday.
Elsewhere, spot silver rose 1.7% to $32.85 an ounce, platinum gained 0.8% to $967.45, and palladium shed 0.1% to $970.42.
(Reporting by Brijesh Patel, Anjana Anil and Anmol Choubey in Bengaluru; Additional reporting by Ishaan Arora; Editing by Barbara Lewis, Shounak Dasgupta and Maju Samuel)
