Gold rose to new all-time high on Thursday as new US economic data weakened the dollar, while tariff threats by President Donald Trump continue to drive safe-haven demand.
Spot gold rose 1.2% to $2,793.25 an ounce by 11:50 a.m. ET, having hit a record $2,798.50 earlier in the session. US gold futures gained 1.9% to $2,846.20 per ounce.
Meanwhile, the US dollar dipped around 0.2% after the latest US GDP growth figures fell below economist forecasts, making bullion less expensive.
The precious metal鈥檚 latest attempt to score a new high 鈥渕ost certainly occurred after the softer than expected GDP print which has softened the dollar further,鈥� said Ole Hansen, head of commodities strategy at Saxo Bank.
鈥淚f softer growth and lower prices can be maintained, the door for additional cuts will be left wide open,鈥� he added, referring to the Federal Reserve鈥檚 decision to hold interest rates steady on Wednesday.
Investors now await the December personal consumption expenditures (PCE) price index report due on Friday for further clues on the Fed鈥檚 policy path.
Gold鈥檚 rally also follows the Trump administration鈥檚聽plans聽to hit Mexico and Canada with steep tariffs, and possibly on China.
鈥淲e are seeing keener uncertainty and anxiety about the Trump administration鈥檚 new policies on trade and foreign policy,鈥� said Jim Wyckoff, a senior market analyst at Kitco Metals.
鈥淕old is shining as a safe haven asset, with investors seeking shelter to weather the storm of unpredictability,鈥� added Susannah Streeter, head of money and markets, Hargreaves Lansdown.
(With files from Bloomberg and Reuters)