Gold prices hit an all-time high today, driven by a weakened US dollar, rising trade tensions, and concerns over global economic growth, which have increased demand for the precious metal known as a safe haven.

The price of gold in spot transactions rose by 1.3 percent to $3,270.12 per ounce at 03:19 GMT. Earlier in the session, it peaked at $3,275.20 per ounce.

Meanwhile, US gold futures increased by 1.4 percent to $3,286.30. Tim Waterer, a senior market analyst at KCM Trade, noted that factors such as the declining value of the dollar and continued risk aversion favor gold.

The dollar index fell by 0.4 percent against its rivals, enhancing the appeal of gold for holders of other currencies. Amid escalating trade tensions between the United States and China, Nvidia announced it would incur costs of $5.5 billion after the US government restricted exports of its AI chip, the H20, to China.

Additionally, China has ordered its airlines not to accept any further shipments of Boeing aircraft in response to the US imposing tariffs of 145 percent on Chinese goods. Bryan Lan, managing director of Gold Silver Central trading in Singapore, remarked that gold will remain strong amid ongoing uncertainty.

Traditionally viewed as a safe investment during geopolitical and economic uncertainty, gold has seen multiple record highs this year, with prices increasing by over 24 percent. Investors are now awaiting US retail sales data, which will provide insights into the economy and the monetary policy trajectory of the Federal Reserve.

Currently, traders expect the Fed to lower interest rates by approximately 87 basis points by the end of 2025. In other precious metals, silver in spot transactions rose by 0.1 percent to $32.32 per ounce, while platinum fell by 0.3 percent to $956.64, and palladium remained stable at $971.10.