Gold prices soared to an all-time high on Wednesday, crossing the $3,300 threshold for the first time as renewed global trade tensions drove investors toward safe-haven assets. The surge follows a fresh round of uncertainty sparked by U.S. President Donald Trump’s directive to investigate potential new tariffs on imports of critical minerals, signaling an escalation in the trade standoff with China.
Gold Hits Record High Amid Tariff Probe
Spot gold jumped 2.2% to $3,299.85 an ounce by 11:07 GMT, having earlier reached an unprecedented $3,317.90. Simultaneously, U.S. gold futures climbed 2.3% to $3,315.80. The move marks a significant milestone for the precious metal, which has rallied nearly 26% since the beginning of the year.
According to Ole Hansen, Head of Commodity Strategy at Saxo Bank, “Trump’s trade war shows no signs of easing… sparking a fresh move towards safe havens and out of stocks.” Analysts say Trump’s latest tariff investigation, targeting imports of critical minerals, is seen as a direct response to China’s dominant role in global mineral supply chains. The investigation adds to ongoing reviews of pharmaceutical and semiconductor imports, reinforcing fears of broader decoupling from China.
Markets Rattle as Chip Tensions Escalate
Investor sentiment also took a hit after the U.S. Commerce Department imposed new export licensing requirements on Nvidia’s H20 and AMD’s MI308 artificial intelligence chips to China. This move triggered declines across Asian and European stock markets and sent U.S. futures lower, compounding investor anxieties.
Against this backdrop, traders have increasingly shifted focus toward safe assets, most notably gold. This flight to safety comes amid growing concerns that the era of “U.S. exceptionalism” may be fading.
Survey Points to Changing Market Mood
A recent survey by Bank of America revealed that 73% of fund managers now believe the “U.S. exceptionalism” narrative has peaked. In a notable shift, 49% of respondents identified “long gold” as the most crowded trade—surpassing U.S. tech stocks for the first time in two years. This reflects a broader repositioning of investor portfolios as market risks mount.
Forecasts See More Room to Run
Given the prevailing trends, analysts have raised their outlooks for gold. ANZ revised its year-end forecast to $3,600 per ounce, with a six-month projection of $3,500. While some experts caution that the rally could face corrections, they also emphasize strong fundamentals.
“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 noted.
Technical indicators point to overbought conditions, with gold’s Relative Strength Index (RSI) surpassing 70. Nevertheless, the broader sentiment remains bullish.
“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, a senior analyst at ActivTrades.
Precious Metals Follow Gold’s Lead
Other precious metals also experienced gains. Spot silver climbed 2% to $32.94 an ounce, platinum rose 0.1% to $960.85, and palladium added 0.6% to $977.09.
In summary, gold’s historic climb reflects a convergence of geopolitical tensions, trade frictions, and shifting investor strategies. As long as uncertainty looms over global markets and central banks remain dovish, analysts believe gold could continue its record-breaking ascent in the months ahead.
