(Alliance News) - Gold leapt to a fresh high record on Wednesday as US President Donald Trump's minerals and rare-earth metals order triggered another wave of rush to safe-haven assets like bullion.

Spot gold was quoted at USD3,295.40 an ounce early Wednesday afternoon in London, up 2.3% from USD3,222.40 at the same time on Tuesday. Silver rose to USD32.88 an ounce from USD32.29.

The yellow metal on Wednesday topped USD3,300 an ounce for the fist time ever, before setting a new record of USD3,317 an ounce as the tussle between the US and China deepened.

Gold passed USD3,300 as it benefitted from the current flight to safety sweeping through the markets, ActivTrades analyst Ricardo Evangelista said.

Trump ordered a probe Tuesday that may result in tariffs on critical minerals, rare-earth metals and associated products such as smartphones, AFP reports.

Trump has upended markets in recent weeks with his sweeping on-off levies, and this investigation could see him impose further tariffs if it shows that imports of critical minerals and their derivatives endanger US national security.

China dominates global supply chains for rare metals.

Since April 2, dubbed 'liberation day' by Trump, gold has gained about 11%, as investors, rattled by the escalating tariff chaos and growing fears of a recession triggered by the intensifying US-China trade war, continue to increase their exposure to bullion, Evangelista said.

"Confidence in US assets is being further undermined by the unpredictable shifts in American trade policy - most recently illustrated by yesterday’s announcement of new restrictions on chip exports to China," Evangelista said.

A weaker dollar also provided support to gold. The euro was buying USD1.1358 on Wednesday afternoon, higher than USD1.1303 a day before. Against the yen, the dollar fell to JPY142.69 from JPY143.01.

"Given the inverse price correlation between the two, this dollar softness is offering additional support to gold prices," Evangelista said.

Investors are waiting for the US retail sales data and a speech from the US Federal Reserve Chair Jerome Powell on Wednesday.

In other commodities, a barrel of Brent oil fetched USD65.24 on Wednesday, up from USD64.73 on Tuesday. West Texas Intermediate crude firmed to USD61.89 a barrel from USD61.37.

Oil prices rose on Wednesday as a surprise economic growth data in China helped offset tariff concerns.

China's gross domestic product increased 5.4% year-on-year in the first quarter of 2025. This latest reading was unchanged from the previous quarter and came in ahead of the 5.1% increase expected according to FXStreet-cited consensus forecasts.

The US-China trade tensions and shifting tariff policies have heightened concerns over global economic growth, which is expected to negatively affect energy demand, Naga.com analyst George Pavel said.

The International Energy Agency has revised its 2025 global oil demand forecast, projecting the slowest growth in five years, Pavel noted.

Elsewhere, platinum was priced at USD966.51 an ounce on Wednesday, up from USD964.89 on Tuesday. Palladium was quoted at USD980.28 an ounce, up from USD960.96.

The copper price fell to USD9,150.00 per tonne from USD9,240.00, while aluminium slipped to USD2,375.00 from USD2,399.00.

By Artwell Dlamini, Alliance News reporter

Comments and questions to [email protected]

Copyright 2025 Alliance News Ltd. All Rights Reserved.