Gold prices reached a new peak on Thursday due to a weakening US dollar and concerns over the escalating trade tensions between the US and China. Gold futures surged by up to 3%, hitting an intraday high of $3,193 per ounce before slightly retreating as traders assessed the impact of President Trump's tariff policies.

The White House confirmed on Thursday that the tariffs on Chinese goods were increased to 145%, instead of the previously stated 125%. President Trump announced a temporary halt on reciprocal tariffs with most US trading partners while raising tariffs on China, adding to the market's uncertainty.

According to Michael Brown, a senior research strategist at Pepperstone, the inconsistent and haphazard policy-making is driving the demand for gold as a safe haven asset. Gold futures have surged over 20% this year amid trade uncertainties and expectations of Federal Reserve interest rate cuts.

The potential risks of a recession or stagflation, coupled with the demand for safe-haven assets, have further boosted gold prices. Sprott market strategist Paul Wong highlighted that persistent tariffs and policy unpredictability are increasing the appeal of gold as a safe investment option.

Various factors such as US dollar weakness, geopolitical tensions, or a crisis of confidence in US governance could fuel gold prices further, according to Wong. Central banks have been increasing gold purchases, and inflows into physical gold-backed exchange-traded funds have also surged.

Ines Ferre, a Senior Business Reporter for Yahoo Finance, provided insights on the gold market's uptrend driven by global economic uncertainties and fluctuating trade policies. For in-depth analysis of stock market news and updates, readers can visit Yahoo Finance for the latest financial and business trends.