Reigning uncertainties in global financial markets over trade tensions continue to let GOLD climb higher on Wednesday. At the time of writing, gold is trading at a little above $1,332 and well above the previous high touched back in February.

Even as trade tensions between the US and China continue to weigh on markets, the latest tariff threat on Mexico has also started worrying investors and traders. Recent reports about the possibility of a rate cut by Fed weakened the dollar on Wednesday have also proved to be beneficial for the precious metal, helping it soar higher.

Hints by several Fed officials signalling a possible rate cut or intervention by the US central bank has caused investors to turn to safe haven assets like gold. Lower interest rates bring down the opportunity cost of holding bullion, making gold more attractive for investors.