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[BENGALURU] Gold prices raced to an all-time high on Wednesday (Apr 16), driven by a weaker US dollar, trade war tensions and concerns over global economic growth due to US President Donald Trump’s tariff plans which led to safe-haven inflows.
Spot gold climbed 1.1 per cent at US$3,261.79 an ounce, as at 0028 GMT, after touching a record high of US$3,266.65 per ounce earlier in the session. US gold futures firmed 1.2 per cent to US$3,279.20.
The US dollar index eased 0.3 per cent against its rivals, making gold more attractive for other currency holders.
Gold, traditionally viewed as a safe-haven investment during times of geopolitical and economic uncertainty, and typically thriving in a low-interest-rate environment, has hit multiple record highs this year.
Federal Register filings on Monday showed the US administration is advancing investigations into pharmaceutical and semiconductor imports in a bid to impose tariffs.
Last week, Trump raised duties on China to 145 per cent, prompting Beijing to jack up levies on US goods to 125 per cent.
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Investors now await US retail sales data due later in the day for insights into the economy and the Federal Reserves monetary policy plans.
“Increasing risks of a deeper recession, another turn in the geopolitical landscape, disruptions in global supply chains, fears of rising inflation along with a changing rate outlook suggest that gold will remain on strong footing in the foreseeable future,” ANZ said in a note.
ANZ raised its year-end gold price forecast to US$3,600 per ounce and six-month forecast to US$3,500.
Spot silver rose 0.3 per cent to US$32.40 an ounce, platinum fell 0.1 per cent to US$958.15 and palladium eased 0.1 per cent to US$970.25. REUTERS
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