Gold prices continued their record streak on Wednesday as investors sought the safe-haven asset amid growing concerns about the US-China trade war and its potential impact on economic growth.
Spot gold rose 0.8% to $2,864 an ounce at 9:24 a.m. ET (1424 GMT), after hitting a record high of $2,877 earlier in the session. U.S. gold futures gained 0.4% to $2,885.90 an ounce.
“Gold continues to be heavily influenced by trade uncertainties... tariffs with China and retaliation have the market on edge, so flows into safe-haven assets remain the dominant factor,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Earlier this week, China retaliated by imposing tariffs on US goods in response to new US tariffs, escalating the trade war, while President Trump expressed no urgency in speaking with President Xi Jinping to ease tensions.
Meanwhile, the US Postal Service said it will resume accepting all incoming mail and packages from China and Hong Kong on Wednesday, one day after temporarily suspending such service.
Three US Federal Reserve officials warned that Trump's trade tariffs could boost inflation, with one suggesting that uncertainty over the price outlook justifies slower interest rate cuts.
The ADP (Automatic Data Processing, Inc.) national employment report showed that the US economy added 183,000 private-sector jobs last month, compared with economists' estimates of a 150,000 increase.
“Employment will be a major focus this week... but I don't think anything will materially impact the Fed's policy expectations unless it's really off the mark,” Grant said.