Gold hits record highs due to dollar weakness and trade war

Gold hit an all-time high on Wednesday as a weaker dollar, escalating trade tensions and concerns about global economic growth fuelled demand for safe havens. Spot gold, which stood at $3,300 an ounce for the first time in history, surged $70 an ounce in the day, up more than 2%, and up more than 25% so far this year. "The combination of a weaker dollar and continued risk aversion is positive for gold," said Tim Waterer, chief market analyst at KCM Trade. Nicholas Frappell, global head of institutional markets at ABC Refinery, said: "More tariff uncertainty, more intransigence from the U.S. government, and tariffs affecting goods shipped through third-party countries, which could damage the global supply chain, are supportive for gold." "Gold will continue to strengthen as long as there is uncertainty," said Brian Lan, managing director of GoldSilver Central, a Singapore-based trader. "We don't think safe haven buying has picked up yet," ANZ previously said. The bank raised its year-end forecast to $3,600 an ounce and its six-month forecast to $3,500 an ounce.