Gold rose to a new high as U.S. President Donald Trump ordered an investigation that could open a new front in the global trade war, triggering a pullback from equities and a move into safe-haven assets.

Bullion rose as much as 1.89% on Wednesday to rise above $3,291 an ounce for the first time, surpassing its previous all-time peak set on Monday. Traders were again caught off guard by a series of tariff headlines, with Trump launching an investigation into the need for levies on critical minerals.

The precious metal has risen more than 20% this year and hit a series of record highs as the escalating trade war stoked fears of a possible global recession and as investors struggled to take long positions amid uncertainty over any tariff announcements from Washington. On Tuesday, Trump called on China to contact him to start trade negotiations after Beijing ordered airlines to stop taking delivery of Boeing Co. jets. The U.S. government also announced probes this week into imports of semiconductors and pharmaceuticals, after imposing sector-specific tariffs on steel and aluminum, cars and auto parts. The government also said it is negotiating with dozens of other trading partners to lower trade barriers in exchange for higher tariff relief.

Leading banks remain bullish on gold's prospects over the coming quarters as investors increase holdings in bullion-backed exchange-traded funds and central banks continue to accumulate the metal. Goldman Sachs Group Inc. predicts prices will rise to $4,000 an ounce by mid-2026. "The power struggle between major economies will continue," said Luchen Wang, a Shanghai-based analyst at Galaxy Futures Co. "Gold's appeal as a safe haven asset means it is more likely to rise than fall in the short to medium term."

Traders are also betting there will be at least three Federal Reserve interest rate cuts this year. Monetary easing is generally positive for precious metals.

Gold rose 1.84% to $3,289.91 an ounce as of 2:15 p.m. in Singapore. The Bloomberg Dollar Spot Index fell. Silver rose, while palladium and platinum weakened. (Newsmaker23)

Source: Bloomberg