On Wednesday, gold prices reached an all-time high, fueled by increased demand for safe-haven assets amid geopolitical tensions and uncertainty surrounding tariffs.

As of 0415 GMT, the price of gold in spot transactions was recorded at $3,035.12 per ounce, after peaking at $3,038.90 earlier in the session.

Meanwhile, U.S. gold futures climbed 0.1% to $3,042.20. Tim Waterer, a senior market analyst, noted that traders view gold as a well-positioned asset to navigate the economic uncertainty tied to tariffs.

Concerns among investors are growing regarding an economic slowdown and rising recession risks, largely attributed to tariffs imposed by former U.S. President Donald Trump, which are widely expected to lead to increased inflation.

These tariffs have exacerbated trade tensions and include a 25% levy on steel and aluminum that took effect in February, along with reciprocal tariffs scheduled to impact specific sectors starting April 2nd.

On the geopolitical front, Israel conducted airstrikes on Gaza, resulting in over 400 reported casualties according to Palestinian health authorities, effectively ending a relative calm that had persisted for nearly two months since a ceasefire.

Israel warned that the attacks are merely the beginning.

Gold, historically viewed as a hedge against geopolitical and economic uncertainty, has surged more than 15% since the start of the year.

In parallel, the U.S. Federal Reserve is anticipated to maintain its benchmark interest rate at 4.25-4.50% by the conclusion of its two-day monetary policy meeting today.

Market participants are closely monitoring remarks from Fed Chair Jerome Powell following the interest rate decision to gauge the trajectory of U.S. monetary policy.

Gold, which does not yield returns, tends to gain value when interest rates are low.

In other precious metals, spot silver dipped 0.2% to $33.97 per ounce, platinum fell 0.4% to $992.85, and palladium decreased 0.1% to $966.24.