Gold prices soared to unprecedented levels on Wednesday, propelled by a weakening U.S. dollar, deepening trade hostilities, and mounting anxiety over the global economic outlook. Investors, rattled by market volatility, flocked to the traditional safe-haven asset.

Spot gold jumped 1.7% to $3,282.88 per ounce by 0457 GMT, after earlier reaching a new record high of $3,290.10. U.S. gold futures also surged, climbing 1.8% to settle at $3,299.60.

“A perfect storm of dollar softness and global unease is boosting demand for gold,” said Tim Waterer, chief market strategist at KCM Trade. The dollar index (.DXY) slipped 0.5% against a basket of major currencies, making gold more affordable for international buyers and adding to its appeal.

Tensions between the U.S. and China continued to flare. On Tuesday, Nvidia (NVDA.O) revealed it expects a $5.5 billion financial hit following U.S. restrictions on exports of its H20 AI chips to China. In retaliation, Beijing halted further purchases of Boeing jets, responding to Washington’s recent move to slap 145% tariffs on a broad range of Chinese imports.

“Gold thrives on uncertainty,” said Brian Lan, managing director at GoldSilver Central in Singapore. “Until there's more clarity on global trade and growth, gold’s momentum is likely to continue.”

Having already notched multiple record highs this year, gold has gained over 25% in 2025 so far. Analysts at ANZ Bank believe the rally still has legs, projecting gold could reach $3,500 in six months and as high as $3,600 by year-end. “Risk-off sentiment hasn’t fully kicked in yet,” they noted.

Investors are now eyeing U.S. retail sales figures due later today, which may offer further insight into economic health and help shape expectations for the Federal Reserve’s next policy moves.

Elsewhere in the metals market, spot silver edged up 0.5% to $32.45 per ounce. Platinum slipped 0.3% to $956.80, while palladium held steady at $971.24.