Gold surged to an unprecedented peak on Wednesday, fueled by a softer dollar, escalating trade disputes, and worries over global economic stability tied to U.S. President Donald Trump’s tariff policies, spurring demand for safe-haven assets.
FUNDAMENTALS
- Spot gold jumped 1.1% to $3,261.79 per ounce by 0028 GMT after reaching an all-time high of $3,266.65 earlier. U.S. gold futures gained 1.2%, hitting $3,279.20.
- The dollar index dipped 0.3% against competitors, boosting gold’s appeal for holders of other currencies.
- Gold, a go-to refuge during geopolitical and economic turbulence, thrives in low-rate climates and has smashed multiple records this year.
- Federal Register documents filed Monday revealed U.S. probes into pharmaceutical and chip imports, signalling looming tariffs.
- Last week, Trump hiked tariffs on China to 145%, prompting Beijing to raise duties on U.S. products to 125%.
- Investors are eyeing U.S. retail sales data later today for clues on economic health and Federal Reserve policy moves.
- “Heightened recession risks, shifting geopolitics, supply chain hiccups, inflation fears, and evolving rate expectations point to gold staying robust,” ANZ noted.
- ANZ upped its year-end gold forecast to $3,600 per ounce, with a six-month target of $3,500.
- Spot silver increased 0.3% to $32.40 per ounce, platinum slipped 0.1% to $958.15, and palladium dropped 0.1% to $970.25.
DATA/EVENTS (GMT)
0200 China Urban Investment (YTD) YY, Retail Sales YY, Unemployment Rate Urban Area Mar
0200 China GDP YY Q1
0600 UK Core CPI, CPI YY Mar
0600 UK CPI Services MM, YY Mar
0900 EU HICP Final MM, YY Mar
1230 US Retail Sales MM Mar
1315 US Industrial Production MM Mar