WASHINGTON (dpa-AFX) - Gold prices hit a new record high on Wednesday amid rising U.S.-China trade tensions and reports suggesting that central banks stormed into the gold market in the final three months of last year.
Spot gold jumped 1 percent to $2,869.79 per ounce in European trade while U.S. gold futures were up 0.7 percent at $2,895.86.
U.S.-China trade tensions remained on investors' radar after the United States Postal Service (USPS) announced a temporary suspension of international package acceptance from China and Hong Kong.
After the U.S. and China both announced tariffs on each other's products, U.S. President Donald Trump indicated that he is in no hurry to speak to Chinese President Xi Jinping.
Meanwhile, the World Gold Council (WGC), an industry lobby group, said in a report that central banks will once again turn to gold as a stable strategic asset.
Central banks bought 1,045 metric tons of gold last year, worth about $96 billion at Tuesday's prices, with Poland, India and Turkey the biggest buyers, according to the group.
Overall gold demand last year reached an annual record of 4974.5 metric tons, up 1 percent on total demand in 2023 of 4945.7t, according to the report.
Investors also look forward to important updates on the health of the U.S. economy.
Key U.S. economic data due this week includes the Services PMI and the ADP employment reports later in the day and the critical nonfarm payrolls report on Friday.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
