- Gold prices hit a record high during Asian trading on Wednesday, supported by continued safe-haven demand, as markets grew increasingly concerned about trade tensions between the United States and China, as well as a warning from Nvidia about expected losses.

- The yellow metal benefited from a weaker dollar, as investors pulled out of U.S. Treasuries amid growing uncertainty about the American economy under President Donald Trump’s administration.

- Spot gold jumped 2.1% to a record high of $3,305.63 per ounce, while June gold futures peaked at $3,320.52 per ounce.

- Gold was buoyed by ongoing demand for safe-haven assets, as investors remained worried about Trump’s plans to impose additional tariffs. Earlier this week, Trump stated he was considering separate tariffs on electronics imports, to be followed soon by tariffs on pharmaceuticals.

- This came as Trump ramped up trade pressure on China by imposing cumulative tariffs of 145%. China responded with its tariffs of 125% on American imports.

- The Trump administration indicated that electronics imports were exempt from the 145% tariffs on China, and Trump recently announced a 90-day exemption from retaliatory tariffs for some other countries.

- These developments have left markets uncertain about the U.S. President’s next steps regarding tariffs, keeping investors inclined toward safe-haven assets such as gold and the Japanese yen.

- Tech giant Nvidia (NASDAQ: NVDA) warned on Tuesday that it may incur a $5.5 billion loss in first-quarter profits due to new U.S. restrictions on chip exports to China.

- This move could prevent Nvidia and its peers in the semiconductor industry from selling to China, which is a key market for chips. The announcement led to sharp losses in U.S. stock futures after the close and dragged down major tech stocks in Asia, reflecting a spike in risk aversion.

- These restrictions could also further isolate Chinese companies from advancing in artificial intelligence and may prompt Beijing to take additional retaliatory measures.

- Conversely, platinum futures fell 0.1% to $968.95 per ounce, while silver futures rose 0.5% to $32.455 per ounce.

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