Gold prices fell on Thursday as investors took profits after bullion hit a record high earlier in the session as curbs on chip sales to China and ongoing tariff uncertainty boosted demand for safe-haven assets.

Spot gold fell 0.1% to $3,339.37 an ounce by 0312 GMT, after hitting a record high of $3,357.40 earlier in the session. Bullion has gained more than 3% this week.

U.S. gold futures rose 0.2% to $3,351.50.

"Everything is going in gold's favor, pushing prices to new record highs. Although the decline is justified, the precious metal is poised for further gains as the trade turmoil continues," said Nikos Tzabouras, senior market analyst at Tradu.com.

Marking another escalation in his dispute with trading partners, U.S. President Donald Trump on Tuesday ordered an investigation into potential new tariffs on all imports of critical minerals alongside a review of pharmaceutical and chip imports.

Beijing has ordered airlines not to take delivery of Boeing (BA.N) planes, opens new tab more.

"China-West tensions show no sign of abating ... and the U.S. dollar has been a casualty of Trump's trade policies, with its role as a safe haven now being called into further question, strengthening gold's appeal," Tzabouras said.

The dollar index, (.DXY)

, opens new tab , is hovering near a three-year low hit last week, making gold more attractive to holders of other currencies.

"Volatility in equity and bond markets could also encourage investors to increase the weight of gold in their portfolios," said Trevor Yates, analyst at Global X.

Gold, traditionally seen as a hedge against political and economic uncertainty as well as inflation, has risen more than 27% so far this year. "We maintain our bullish stance on gold, although a decline towards $3,050 an ounce seems likely after the recent rapid rise in prices," analysts at ANZ said.

Spot silver fell 1% to $32.43 an ounce, platinum fell 0.2% to $965.46, and palladium fell 1.4% to $958.26.(Newsmaker23)

Source: Reuters