Gold prices surpassed the $3,300 mark for the first time on Wednesday, as investors sought safe-haven assets after U.S. President Donald Trump ordered a probe into potential new tariffs on U.S. critical mineral imports.
Spot gold was up 2.3% to $3,301.78 an ounce as of 1018 GMT, after hitting a record high of $3,317.90 earlier in the session. U.S. gold futures gained 2.4% to $3,317.70.
"Trump's trade war shows no signs of easing... sparking a fresh move towards safe havens and out of stocks," said Ole Hansen, head of commodity strategy at Saxo Bank.
Trump's probe, announced on Tuesday, is viewed as an attempt to push back on leading critical minerals producer China, and comes on top of reviews into pharmaceutical and chip imports.
Meanwhile, Asian and European shares fell along with U.S. stock futures after the U.S. Commerce Department announced new export licensing requirements for Nvidia's H20 and AMD's MI308 artificial intelligence chips to China.
According to a recent BofA survey, 73% of respondents believe that the theme of "U.S. exceptionalism" has peaked, impacting markets, and 49% now view "long gold" as the most crowded trade, overtaking bets on U.S. tech giants for the first time in 24 months.
Gold has risen nearly 26% this year, buoyed by tariff disputes, strong central bank buying, expectations of interest rate cuts, and flows into bullion-backed exchange-traded funds.
ANZ on Wednesday raised its year-end gold price forecast to $3,600 per ounce and its six-month forecast to $3,500.
"The rally has become a bit unhinged, leaving it at risk of corrections. However we have for more than a year now seen corrections to be shallow, with underlying bids waiting on any setbacks," Hansen said.
Gold's relative strength index (RSI) stands above 70, indicating that the metal is overbought.
However, "the fundamentals here are too strong, and I can't really see another scenario different from the overall risk being tilted to the upside", said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades.
Spot silver rose 1.8% to $32.88 an ounce, platinum was steady at $960.30, and palladium was little changed at $971.50.
Source: Reuters
Gold price advances during the North American session on Friday as the US Dollar weakens, with traders booking profits ahead of the weekend. Additionally, a Fed Governor's comments turned more dovish ...
Gold (XAU/USD) is trading higher on Friday as investors remain focused on Fed expectations US economic data. At the time of writing, XAU/USD recovers above $3,350, pushing the price closer toward the ...
Gold traded higher early on Friday as the dollar and treasury yields weakened. Gold for August delivery was last seen up US$17.80 to US$3,363.10 per ounce. The price of the precious metal has traded ...
Gold prices rose on Friday (July 18th), but were on track for a weekly decline as concerns about the US Federal Reserve's independence eased and strong US data emerged, while platinum rose to a nearly...
Gold steadied and was set for a moderate weekly loss as investors assessed the outlook for Federal Reserve rate cuts after resilient US jobs and retail data eased concerns about the economy. Bullion ...
The EUYR/USD finished Friday's session with gains of over 0.26% amid a weaker US Dollar, following dovish comments by Fed Governor Christopher Waller, which weighed on US Treasury yields. Still, an improvement in Consumer Sentiment capped the...
The U.S. dollar slipped against the euro on Friday but held on to weekly gains, as investors weighed expected Federal Reserve policy amid signs that tariffs may be starting to increase some inflation pressures and as U.S. President Donald Trump...
Former U.S. President Donald Trump threatened to impose tariffs on members of the BRICS group of nations on Friday, warning the alliance would quickly collapse if it ever becomes a significant economic force. "When I heard about this group from...
Unemployment claims fell 7,000 to 221,000 in the week ending July 12, compared with the median estimate of 233,000, according to Labor Department...
The United States Commerce Department is set to impose preliminary anti-dumping duties of 93.5% on graphite imported from China after concluding the...
US stocks advanced on Thursday, supported by upbeat earnings and solid economic data as markets brushed aside lingering concerns over President...
Federal Reserve Governor Adriana Kugler said the US central bank should keep interest rates steady "for some time," citing accelerating inflation as...