Gold hits new record high amid Federal Reserve chief's warning

Gold hit another high as warnings from Federal Reserve Chief Jerome Powell about the impact of the trade war fueled volatility on Wall Street, leading to sharp declines in stocks and the dollar.

Bullion gained as much as 0.4% to $3,357.78 an ounce, after adding 3.5% on Wednesday in its biggest one-day gain since March 2023. The dollar plummeted to a fresh six-month low as traders were whiplashed again by a torrent of tariff reports, while Powell quelled hopes the Fed would intervene soon to reassure investors, emphasizing the unpredictability of tariff pronouncements from Washington.

As the growing trade war raises concerns about a potential global recession, the price of precious metal has increased by about 28% this year, surpassing the 27% gain it recorded in 2024. In negotiations over US tariffs, the Trump administration is getting ready to put pressure on countries to reduce trade with China.