Gold prices hit an all-time high on Wednesday as a weaker dollar, rising trade tensions and concerns over global economic growth boosted demand for safe-haven bullion.

Spot gold rose 1.3% to $3,270.12 an ounce, as of 0319 GMT. It peaked at $3,275.20 an ounce earlier in the session.

U.S. gold futures rose 1.4% to $3,286.30.

"A combination of factors such as a weaker dollar and continued risk aversion are working in gold's favor," said Tim Waterer, chief market analyst at KCM Trade.

The dollar index (.DXY), opens a new tab , fell 0.4% against its rivals, making gold more attractive to holders of other currencies. [USD/]

As trade tensions between the U.S. and China escalate, Nvidia (NVDA.O)

, opens new tab on Tuesday said it would take a $5.5 billion charge after the U.S. government restricted exports of its H20 artificial intelligence chips to China.

In addition, China ordered its airlines not to accept further shipments of Boeing (BA.N)

, opens new tab jets in response to the 145% tariffs imposed by the U.S. on Chinese goods.

"Gold will continue to rally as long as there is uncertainty," said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.

Gold, traditionally seen as a safe investment during times of geopolitical and economic uncertainty, has hit multiple record highs this year and is up more than 24% so far in 2025.

"We believe that de-risking gold buying has not picked up steam," analysts at ANZ said, raising the bank's year-end gold price forecast to $3,600 an ounce and its six-month forecast to $3,500.

Investors now await U.S. retail sales data, due later in the day, for insights into the economy and the Federal Reserve's monetary policy trajectory.

Traders are currently pricing in about 87 basis points of Fed rate cuts by the end of 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. (Newsmaker23)

Source: Reuters