Gold prices rose to an all-time high on Thursday to trade above the $2,950 an ounce level, as concerns that U.S. President Donald Trump's tariff threats will spark a global trade war boosted investors' appetite for the metal.
Spot gold was up 0.6% at $2,951.25 an ounce by 1136 GMT, having hit $2,954.69 earlier in the session, its 10th all-time high this year. U.S. gold futures gained 1.1% to $2,969.30.Gold, a safe haven in uncertain times, has gained 12% so far this year.
"The $3,000 level seems to be having a magnetic effect on the market and, while by most accounts the market is technically overbought, it seems determined to break through that magic level," said independent analyst Ross Norman.
"The $2,950 is considered the last chart resistance before the market rises to challenge the $3,000 level and it now looks like a question of when rather than if."
Trump said Wednesday that he will announce tariffs related to lumber, automobiles, semiconductors and pharmaceuticals "over the next month or sooner."
Since taking office on January 20, Trump has imposed a 10% tariff on Chinese imports and a 25% tariff on steel and aluminum.
Trump also denounced Ukrainian President Volodymyr Zelenskiy on Wednesday as a dictator and told him he had to act quickly to secure peace or risk losing his country.
"While there is speculation that possible peace talks between Ukraine and Russia could lead to some easing in the gold price, any weakness in gold may be temporary," IG market strategist Yeap Jun Rong wrote in a note.
Separately, minutes from the Federal Reserve's last monetary policy meeting on Wednesday showed that Trump's initial policy proposals had stoked concerns about rising inflation, reinforcing the central bank's stance to refrain from further rate cuts.
Spot silver advanced 1.2% to $33.12 an ounce. Platinum rose 0.2% to $974.05, while palladium was up 1.7% to $984.59.
By Anjana Anil and Sarah Qureshi, Reuters