Spot Gold surged more than 1.5% on Wednesday, while the US Dollar lost ground after US tariffs on China took effect.
The US Dollar Index was last down 0.75% to 102.141.
A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
US President Trump ramped up tariffs on Chinese imports to 104% after Beijing’s retaliatory tariffs, as he accused Beijing of Yuan manipulation to mitigate the effect of the duties.
China condemned this as “economic bullying” and reiterated its commitment to take countermeasures to protect its interests.
Country-specific tariffs came into effect at 04:01 GMT (12:01 a.m. Eastern Time).
“The downward shift in the dollar on tariff worries effectively paved the way for gold to reclaim the $3000 level,” KCM Trade chief market analyst Tim Waterer was quoted as saying by Reuters.
“Due to global growth and inflation uncertainties, gold is still on track to pursue new all-time highs despite experiencing a few bumps in its progress over the last week.”
Spot Gold was last up 1.61% on the day to trade at $3,030.14 per troy ounce.
Market focus now sets on the minutes of the Federal Reserve’s March meeting, due out later today, for clues over how policy makers have weighed the risk of a broader tariff war.
Markets are now pricing in about 93 basis points of interest rate cuts by the Federal Reserve by December.
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