Gold hits record high on economic growth concerns

Gold prices raced to an all-time high on Wednesday (Apr 16), driven by a weaker US dollar, trade war tensions and concerns over global economic growth due to US President Donald Trump’s tariff plans which led to safe-haven inflows.

Spot gold climbed 1.1 per cent at US$3,261.79 an ounce, as at 0028 GMT, after touching a record high of US$3,266.65 per ounce earlier in the session. US gold futures firmed 1.2 per cent to US$3,279.20.

The US dollar index eased 0.3 per cent against its rivals, making gold more attractive for other currency holders.

Gold, traditionally viewed as a safe-haven investment during times of geopolitical and economic uncertainty, and typically thriving in a low-interest-rate environment, has hit multiple record highs this year.

Federal Register filings on Monday showed the US administration is advancing investigations into pharmaceutical and semiconductor imports in a bid to impose tariffs.

Last week, Trump raised duties on China to 145 per cent, prompting Beijing to jack up levies on US goods to 125 per cent.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Investors now await US retail sales data due later in the day for insights into the economy and the Federal Reserves monetary policy plans.

“Increasing risks of a deeper recession, another turn in the geopolitical landscape, disruptions in global supply chains, fears of rising inflation along with a changing rate outlook suggest that gold will remain on strong footing in the foreseeable future,” ANZ said in a note.

ANZ raised its year-end gold price forecast to US$3,600 per ounce and six-month forecast to US$3,500.

Spot silver rose 0.3 per cent to US$32.40 an ounce, platinum fell 0.1 per cent to US$958.15 and palladium eased 0.1 per cent to US$970.25. REUTERS