- Gold hits record high at $3,294.99
- ANZ raises year-end gold price forecast to $3,600
- Gold prices to remain strong, analyst says
April 16 (Reuters) - Gold scaled a record peak on Wednesday as a weaker dollar, escalating trade tension and concerns over global economic growth fuelled safe-haven demand.
Spot gold rose 1.9% to $3,287.79 an ounce, as of 0648 GMT. It hit an all-time high of $3,294.99 per ounce earlier in the session.
U.S. gold futures gained nearly 2% to $3,304.20.
"A confluence of factors such as dollar depreciation and ongoing risk aversion are working in gold's favour," KCM Trade chief market analyst Tim Waterer said.
The dollar index eased 0.7% against its rivals, making gold more attractive for other currency holders.
Further escalating the U.S.-China trade tensions, Nvidia said on Tuesday it would take $5.5 billion in charges after the U.S. government limited exports of its H20 artificial intelligence chip to China.
China ordered its airlines not to take any further deliveries of Boeing jets in response to the U.S. imposing 145% tariffs on Chinese goods.
"More tariff uncertainty, more intransigence from the U.S. administration, tariff impacting goods moving through third-party countries with likely damage to global supply chains," is supporting gold, said Nicholas Frappell, global head of institutional markets, ABC Refinery.
Gold, traditionally viewed as a safe-haven investment during times of geopolitical and economic uncertainties, hit multiple record highs this year, gaining over 25%.
"Gold will continue to be strong as long as there's uncertainty," Singapore-based dealer GoldSilver Central Managing Director Brian Lan said.
Investors now await the U.S. retail sales data, due later in the day, for economic insights and the Federal Reserve's policy trajectory.
"We believe risk-off purchases for gold are yet to pick up," ANZ said, raising the bank's year-end gold price forecast to $3,600 per ounce and six-month forecast to $3,500.
Spot silver added 0.8% to $32.56 an ounce. Platinum fell 0.5% to $954.90 and palladium was down 0.6% at $965.96.
Reporting by Rahul Paswan and Anushree Mukherjee in Bengaluru; Editing by Sumana Nandy, Rashmi Aich and Sonia Cheema
Source: Reuters