WASHINGTON (dpa-AFX) - Gold prices rose to fresh record highs on Wednesday as the dollar weakened amid concerns the proposed tariffs by the Trump administration could significantly hurt global economic growth and corporate earnings.
Gold prices rose on 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.
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.
The dollar index dropped to 107.30 before recovering some lost ground. The index was last seen at 107.50, down more than 0.4% from previous close.
Gold futures for February closed up $18.30 or about 0.64% at $2,871.60 an ounce, extending gains to a third straight session.
Silver futures for February settled at $32.857 an ounce, down $0.031 or 0.09%, while Copper futures for February climbed to $4.4450 per pound, gaining more than 2%.
In economic news, payroll processor ADP released a report on Wednesday showing private sector employment in the U.S. increased by more than expected in the month of January, climbing by 183,000 jobs in January after rising by an upwardly revised 176,000 jobs in December.
Economists had expected private sector employment to rise by 150,000 jobs compared to the addition of 122,000 jobs originally reported for the previous month.
A report released by the Commerce Department on Wednesday showed the U.S. trade deficit spiked to $98.4 billion in December from a revised $78.9 billion in November. Economists had expected the trade deficit to jump to $96.6 billion from the $78.2 billion originally reported for the previous month.
Service sector growth in the U.S. unexpectedly slowed modestly in the month of January, according to a report released by the Institute for Supply Management. The ISM said its services PMI dipped to 52.8 in January from a revised 54.0 in December. While a reading above 50 still indicates growth, economists had expected the index to inch up to 54.3.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
