Gold is hitting new record levels supported by a weak dollar and escalating trade tensions.

Gold prices hit unprecedented levels during trading on Wednesday, April 16, supported by the weakening of the US dollar and increasing concerns about global trade tensions.

Gold is considered a safe haven for investors during economic and geopolitical turmoil, having surged over 24% since the beginning of the year, reaching several record highs.

Weak dollar boosts demand for the precious metal

The dollar index fell by 0.4% against a basket of major currencies, increasing the attractiveness of gold for investors dealing in other currencies.

Spot gold prices rose by about 2.3% to $3304 per ounce, while gold futures jumped by the same percentage, reaching $3316 per ounce with an increase of over $75.

Escalating trade tensions support gains

Tim Waterer, Senior Market Analyst at "K.C.M. Trade," stated to Reuters that "the decline of the dollar, along with investors avoiding risk, are strong drivers for gold's rise."

These comments come amid escalating trade disputes between the US and China, with Nvidia announcing bearing costs of $5.5 billion due to US government restrictions on exporting advanced AI chips to China.

Mutual reactions intensify tension

China, in response, directed its affiliated airlines not to accept any additional shipments of Boeing aircraft, in retaliation to the US imposing a 145% tariff on some Chinese imports.

Anticipating new economic events

Investors are now focusing on upcoming US retail sales data, Bank of Canada's interest rate decision, latest inflation data in the UK, all of which could impact global market movements.