Gold prices rise above $2,850 per ounce

Gold prices hit a new record high in Asian trading on Wednesday, as ongoing concerns over the escalating US-China trade dispute and investor concerns over the situation in Gaza following US President Donald Trump’s comments about the possibility of US control over the Strip pushed prices higher.

Spot gold prices jumped 0.6% to an all-time high of $2,858.27 per ounce, while April gold futures rose 0.4% to $2,885.39 per ounce.

US President Donald Trump’s comments about the possibility of the US controlling the Gaza Strip and resettling Palestinians in the area sparked sharp reactions from several countries in the region, boosting demand for gold as a safe haven.

The weakness of the dollar also helped lift gold prices, as the dollar lost all its gains this week after Trump postponed imposing tariffs on Mexico and Canada.

Although Trump did not provide any facilities to China, which kept traders in a state of caution towards riskier assets, in light of the continued escalation in the trade dispute between the two countries, and China responded to the new American tariffs that went into effect yesterday, Tuesday.