COMEX gold futures hit record high of $3,453/oz.

The dollar tumbled as investor confidence in the U.S. economy took another hit over President Donald Trump's comments about Federal Reserve chairman Jerome Powell. A weaker dollar makes bullion more appealing for other currency holders.

On the trade war front, China accused Washington of abusing tariffs and warned countries against striking a broader economic deal with the U.S. at its expense.

"As tariff tensions continue to move at a fevered pitch, we continue to see gold prices move to the upside as a safe haven response," said David Meger, director of metals trading at High Ridge Futures.

"There'll be pullbacks and profit-taking at times, but we still believe in the underlying trend to be on sideways to higher trajectory."

Gold, which is considered a hedge against uncertainties and known to be a highly liquid asset, has scaled multiple record highs and gained more than $700 since the start of 2025. It surpassed $3,300 last Wednesday and its strong momentum pushed it up by another $100 in just a few days.

"These much bigger daily price moves in gold are one early clue this very mature bull market run is close to climaxing and that a near-term market top may be close at hand, from a time perspective, more so than a price perspective," said Jim Wyckoff, senior analyst at Kitco Metals.