April 16 (Reuters) – Gold prices hit an all-time peak on Wednesday as a weaker dollar, escalating trade tensions and concerns over global economic growth increased demand for the safe-haven bullion.
Spot gold rose 1.3% to $3,270.12 an ounce, as of 0319 GMT. It scaled a peak of $3,275.20 per ounce earlier in the session.
U.S. gold futures gained 1.4% to $3,286.30.
“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 fell 0.4% against its rivals, making gold more attractive for other currency holders. [USD/]
Further escalating trade tensions between the U.S. and China, 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.
Adding to this, China ordered its airlines not to take any further deliveries of Boeing jets in response to the U.S. slapping 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 uncertainty, has hit multiple record highs this year and is up over 24% so far in 2025.
“We believe risk-off purchases for gold are yet to pick up,” analysts at ANZ said and raised the bank’s year-end gold price forecast to $3,600 per ounce and six-month forecast to $3,500.
Investors now await U.S. retail sales data, due later in the day, on insights into the economy and the Federal Reserve’s monetary policy trajectory.
Traders currently expect around 87 basis points of Fed rate reductions by end-2025.
Spot silver rose 0.1% to $32.32 an ounce, platinum fell 0.3% to $956.64 and palladium was steady at $971.10.
