Gold Breaks $3,300 as Expanding Trade War Bolsters Haven Demand

Gold surged to a fresh high on haven demand as the dollar fell and tech stocks slumped after US President Donald Trump ordered a probe that could open up a new front in the global trade war.

Bullion gained as much as 2.7% on Wednesday to climb above $3,300 an ounce for the first time, surpassing the previous record set on Monday. The dollar fell to a fresh six-month low as traders were whiplashed again by a slew of tariff headlines, with Trump launching an investigation into the need for levies on critical minerals.

Gold briefly pared gains following a report that China is open to trade talks with the US if it names a point person to represent the country and shows respect by reining in disparaging remarks, according to a person familiar with the Chinese government’s thinking.

The precious metal has climbed 26% this year and hit a series of record highs as the escalating trade war creates anxiety over a possible global recession and as investors struggle to take long-term positions due to the unpredictability of tariff announcements from Washington.

Source: Financeyahoo