Uncertainties over the U.S.-China trade war left gold in an unstoppable position Wednesday, with bullion hitting another record high of $3,339 per ounce, last up 3.5%.
Australian bank ANZ on Wednesday updated its forecast for gold to hit $3,600 an ounce by year-end, saying safe-haven demand for the asset would accelerate.
U.S. Treasury yields fell after comments from by Federal Reserve Chairman Jerome Powell stoked concerns about economic growth and inflation pressures. The benchmark 10-year Treasury yield fell 4 basis points to 4.283%, after yields surged last week on concerns about the stability of the U.S. economy.
Traders of short-term interest-rate futures are betting the Fed resumes rate cuts in June and that by year-end the policy rate, currently in the 4.25%-4.50% range, will be a full percentage point lower.
DOLLAR SLIDES
The U.S. dollar index, which tracks the currency against six peers, slid 0.7% to around its lowest since April 2022 in a sign investors remained cautious about U.S. assets. The Japanese yen and Swiss franc, seen as safe assets during market turbulence, rallied around 0.8% and 1.2%, respectively.
The yen was trading around its highest level since September while the franc was at its highest in 10 years . Bank of Japan Governor Kazuo Ueda told the Sankei newspaper that the central bank may need to take policy action if U.S. tariffs hurt the Japanese economy, signaling the potential to pause the bank's rate-hiking cycle.
OIL RISES 2%
Oil prices rose around 2% to a two-week high on concerns about global supplies after Washington issued new sanctions targeting Chinese importers of Iranian oil. In cryptocurrencies, bitcoin added 0.5% to $84,389, down nearly 10% for the year.