Gold hits new record high amid Federal Reserve chief's warning

Gold hit another high as warnings from Federal Reserve Chief Jerome Powell about the impact of the trade war fueled volatility on Wall Street, leading to sharp declines in stocks and the dollar.

Bullion gained as much as 0.4% to $3,357.78 an ounce, after adding 3.5% on Wednesday in its biggest one-day gain since March 2023. The dollar fell to a fresh six-month low as traders were whiplashed again by a slew of tariff headlines, while Powell quelled hopes the Fed would act quickly to soothe investors, highlighting the unpredictability of tariff announcements from Washington.

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The precious metal has climbed almost 28% this year — outpacing the 27% gain it notched in 2024 — as the escalating trade war creates anxiety over a possible global recession. Meanwhile, the Trump administration is preparing to pressure nations to curb trade with China in negotiations over US tariffs.

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“A combination of heightened uncertainty around tariffs, an anticipated slowdown in economic growth, inflation fears and increasing prospects of lower interest rates set a perfect backdrop for the precious metal to record further gains,” ANZ Research analysts Brian Martin and Daniel Hynes said in a note.

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Gold was up 0.3% at $3,351.79 an ounce at 6:57 a.m. in Singapore. The Bloomberg Dollar Spot Index was little changed after dropping 0.7% on Wednesday. Silver, platinum and palladium rose.