Safe-haven gold surpassed the key $3,200 mark for the first time Friday, spurred by a weaker dollar and economic concerns due to an intensifying trade war.

Spot gold jumped over 1% to $3,214.92 an ounce, as of 0801 GMT, after hitting a record high of $3,219.84 earlier in the session. Bullion is up over 5% so far this week.

U.S. gold futures climbed nearly 2% to $3,233.80.

"Recession risks are mounting, bond yields are soaring, and the U.S. dollar continues to weaken – all factors reinforcing gold's role as a crisis hedge and inflation shield," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.

U.S. President Donald Trump suddenly paused his "reciprocal" tariffs on other countries hours after they came into effect earlier this week, but he ratcheted up duties on Chinese imports as punishment for Beijing's initial move to retaliate.

The pause also did little to soothe business leaders' worries about the fallout from Trump's trade war and its chaotic implementation.

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Global stocks fell and the dollar index sank to a decade low. A lower dollar makes greenback-priced bullion cheaper for overseas buyers.

Spot gold has continued its blazing rally from the last year, hitting multiple record highs and gaining nearly 21% so far this year driven by uncertainties, central bank demand and increased flows into gold-backed exchange-traded funds.

"We believe gold has further to run—in the upside case, we target USD 3,400-3,500/oz over the months ahead," said UBS analyst Giovanni Staunovo.

Data on Thursday showed U.S. consumer prices unexpectedly fell in March. Focus was also on the U.S. producer price data due at 1230 GMT for insights into the Federal Reserve's monetary policy trajectory.

Traders now bet that the Fed will resume cutting rates in June and probably reduce by a full percentage point by the end of 2025.

Spot silver gained 0.4% to $31.31 an ounce, while platinum added 0.7% to $944.35. Palladium gained 1.9% to $925.43.