Gold holds near record peak as trade jitters boost safe-haven demand

Gold prices edged higher on Thursday, hovering near record highs hit in the previous session, as tensions in the China-U.S. trade war lifted safe-haven demand, while investors awaited the U.S. jobs data for clues on the future direction of interest rates.

Spot gold was steady at $2,870.16 per ounce, by 0306 GMT, after hitting an all-time peak of $2,882.16 in the previous session.

U.S. gold futures shed 0.2% to $2,888.30.

"Investors are trying not to miss this rally as they place their position because they are happy with the returns. That's the reason why it's hitting successive highs," said Soni Kumari, a commodity strategist at ANZ.

"Bullion could hit the $3,000 level soon ... however, what could make the market consolidate will be some clarity on trade ties or easing trade tensions."

China filed a World Trade Organization complaint against U.S. President Donald Trump's new 10% tariff on Chinese imports and his cancellation of a duty-free exemption for low-value packages, arguing the actions are "protectionist" and break WTO rules.

China had also imposed duties on U.S. goods in response to U.S. tariffs, escalating the trade war between the two countries.

Market focus is also on U.S. weekly jobless claims data, set to be released at 1330 GMT, and Friday's non-farm payrolls report, which is expected to offer more insights into the economy's overall strength.

Federal Reserve officials pointed to the large policy uncertainty around tariffs and other issues arising from the early days of Trump's administration as among the top challenges in figuring out where to take U.S. monetary policy in the months ahead.

Gold is considered a safe investment during economic and geopolitical turmoil, but higher interest rates reduce the non-yielding asset's appeal.

Spot silver dropped 0.2% to $32.26 per ounce, platinum rose 0.4% to $983.30, and palladium gained 0.5% to $994.17.

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