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Picture: 123RF
Picture: 123RF

New York — Gold prices extended their record run on Wednesday, breaching $3,300 an ounce, as a weaker dollar and escalating US-China trade tensions pushed investors towards the safe-haven asset.

Spot gold climbed 3% to $3,328/oz at 5.50pm SA time, while US gold futures gained 2.6% to $3,324.50.

“Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about a global recession,” said Lukman Otunuga, senior research analyst at FXTM.

“Beyond $3,300, it’s all about psychological levels ... Bulls may target $3,400, $3,500 and upwards. However, a bout of profit-taking or positive US-China trade developments could trigger a sell-off.”

US President Donald Trump on Tuesday ordered an investigation into possible tariffs on all US critical minerals imports, marking another escalation in his dispute with global trade partners and an attempt to pressure China.

The latest flare-up between the world’s two biggest economies dented sentiment in wider financial markets, sending investors towards safe-haven assets such as gold.

The dollar, meanwhile, slipped against its rivals to hold near a three-year low recorded last week, making gold more attractive for holders of other currencies.

Gold has risen almost $700 this year, supported by the tariff disputes, expectations of interest rate cuts and strong central bank buying.

“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,” said Ole Hansen, head of commodity strategy at Saxo Bank.

Federal Reserve chair Jerome Powell said in a speech on Wednesday that US economic growth appeared to be slowing. “Despite heightened uncertainty and downside risks, the US economy is still in a solid position,” Powell said in remarks prepared for delivery at the Economic Club of Chicago. But “the data in hand so far suggest that growth has slowed in the first quarter from last year’s solid pace.”

Spot silver rose 1.5% to $32.75/oz, platinum gained 1% to $968.53, and palladium rose 0.3% to $974.20.

Update: April 16 2025
This story has been updated with the latest gold prices.

Reuters

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