Gold hits record high on economic growth concerns

Synopsis

Gold prices hit a record high on Wednesday. This surge happened because of a weaker dollar and trade war worries. Concerns about global economic growth also played a role. Investors are now waiting for U.S. retail sales data. This data will provide insights into the economy. ANZ has raised its gold price forecast for the year end.

Gold prices raced to an all-time high on Wednesday, driven by a weaker dollar, trade war tensions and concerns over global economic growth due to U.S. President Donald Trump's tariff plans which led to safe-haven inflows.

FUNDAMENTALS

* Spot gold climbed 1.1% at $3,261.79 an ounce, as of 0028 GMT, after touching a record high of $3,266.65 per ounce earlier in the session. U.S. gold futures firmed 1.2% to $3,279.20.

* The dollar index eased 0.3% against its rivals, making gold more attractive for other currency holders.

* Gold, traditionally viewed as a safe-haven investment during times of geopolitical and economic uncertainty, and typically thriving in a low-interest-rate environment, has hit multiple record highs this year.

* Federal Register filings on Monday showed the U.S. administration is advancing investigations into pharmaceutical and semiconductor imports in a bid to impose tariffs.

* Last week, Trump raised duties on China to 145%, prompting Beijing to jack up levies on U.S. goods to 125%.

* Investors now await U.S. retail sales data due later in the day for insights into the economy and the Federal Reserves monetary policy plans.

* "Increasing risks of a deeper recession, another turn in the geopolitical landscape, disruptions in global supply chains, fears of rising inflation along with a changing rate outlook suggest that gold will remain on strong footing in the foreseeable future," ANZ said in a note.

* ANZ raised its year-end gold price forecast to $3,600 per ounce and six-month forecast to $3,500.

* Spot silver rose 0.3% to $32.40 an ounce, platinum fell 0.1% to $958.15 and palladium eased 0.1% to $970.25.

DATA/EVENTS (GMT) 0200 China Urban Investment(YTD) YY, Retail Sales YY, Unemp Rate Urban Area Mar 0200 China GDP YY Q1 0600 UK Core CPI, CPI YY Mar 0600 UK CPI Services MM, YY Mar 0900 EU HICP Final MM, YY Mar 1230 US Retail Sales MM Mar 1315 US Industrial Production MM Ma.

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