Wednesday saw gold prices reach an all-time high as demand for the safe-haven metal surged due to a declining dollar, rising trade tensions, and worries about the expansion of the world economy.
As of 0319 GMT, spot gold increased 1.3% to $3,270.12 an ounce. Earlier in the day, it peaked at $3,275.20 an ounce. At $3,286.30, US gold futures increased 1.4%. According to Tim Waterer, chief market analyst at KCM Trade, "a combination of factors like dollar depreciation and ongoing risk aversion are working in gold's favor."
Other currency holders found gold more appealing as the dollar index dropped 0.4% compared to its competitors. Nvidia announced on Tuesday that it would pay $5.5 billion in fines after the US government restricted exports of its H20 artificial intelligence processor to China, further intensifying trade tensions between the US and China.
Furthermore, in reaction to the United States imposing 145% taxes on Chinese imports, China instructed its airlines to stop accepting any more Boeing aircraft deliveries. "As long as there is uncertainty, gold will remain strong," stated Brian Lan, managing director of GoldSilver Central, a trader based in Singapore.
Gold, which has reached several record highs this year and is up more than 24% so far in 2025, is typically thought of as a safe-haven investment during periods of geopolitical and economic instability.
Analysts at ANZ stated, "We believe risk-off purchases for gold are yet to pick up," and increased the bank's six-month and year-end gold price forecasts to $3,500 and $3,600 per ounce, respectively. In order to gain insight into the economy and the direction of the Federal Reserve's monetary policy, investors are now anticipating US retail sales data, which is coming later in the day.
By the end of 2025, traders anticipate a Fed rate cut of about 87 basis points. Palladium was stable at $971.10, platinum dropped 0.3% to $956.64, and spot silver increased 0.1% to $32.32 an ounce.
