BENGALURU (Feb 19): Gold prices advanced to an all-time high on Wednesday, as trade war tensions and concerns over global economic growth drove safe-haven flows, following US President Donald Trump's new tariff threats.

Spot gold was up 0.3% at US$2,943.25 (RM13,076.86) an ounce as of 1025 GMT, after surging to an all-time-high of US$2,946.75/oz earlier in the session. Prices scaled record for a ninth time this year.

US gold futures rose 0.4% to US$2,961.00.

"Gold's rally appears to be driven by President Trump's remarks on upcoming tariffs for autos and pharmaceuticals, which could pave the way for a push towards US$3,000," said Zain Vawda, a market analyst at MarketPulse by OANDA.

Since taking office, Trump has imposed a 10% tariff on Chinese imports, and set a 25% tariff on steel and aluminium. Adding to the tariffs agenda, the US president said on Tuesday he intends to impose auto tariffs "in the neighbourhood of 25%", and similar duties on semiconductors and pharmaceutical imports.

"I don't see central banks stopping buying gold anytime soon, but rather expecting them to keep diversifying their reserves into gold and support the gold price," UBS analyst Giovanni Staunovo said.

Bullion is viewed as a hedge against rising inflation and geopolitical uncertainties, but higher rates reduce the non-yielding asset's appeal.

Meanwhile, market focus is also on the US Federal Reserve's interest rate stance, with minutes of its January policy meeting due later in the day.

"Any bearish impact [on gold] from today's (Wednesday) Federal Open Market Committee minutes release is expected to be short-lived," Vawda said.

Among other metals, spot silver, used in electrical components, added 0.4% to US$32.99 an ounce, while auto catalysts platinum fell 0.6% to US$981.56 and palladium firmed 0.1% to US$987.75.

"Although the imposition of tariffs could hurt silver's industrial demand, it could still push higher from a valuation perspective, also assuming the positive correlation with its more illustrious precious metals cousin remains intact," said Han Tan, Exinity Group's chief market analyst.

Uploaded by Tham Yek Lee