Gold prices soared to new heights on Wednesday, following an unprecedented record in the previous session. Investors are flocking to the precious metal as they seek refuge from growing uncertainties, particularly in light of anticipated reciprocal tariffs being implemented by the U.S.

As of 0240 GMT, spot gold surged by 0.7% to reach $3,131.25 an ounce, following an all-time high of $3,148.88 on Tuesday. U.S. gold futures also climbed, rising 0.4% to $3,159.90.

"The continuous rise in gold prices can be attributed largely to safe-haven buying amid global geopolitical tensions, which show no signs of abating," noted Philip Newman, managing director of Metals Focus.

Experts predict that a potential slowdown in the U.S. economy, coupled with inflationary pressures and an expected easing of interest rates, could see gold prices hitting a staggering $3,300 in the upcoming months.

The market is on edge as it awaits the announcement of new tariffs, which President Donald Trump has termed as "Liberation Day." Trump’s tariff policies could not only heighten inflation and stifle economic growth but also ignite further trade disputes, adding to uncertainties in the market.

Gold, traditionally viewed as a hedge against global instability and inflation, benefits particularly well in a low-interest-rate environment. The White House has confirmed that new tariffs will be enacted; however, specific details regarding their size and scope remain undisclosed.

The surge in gold prices is also being driven by robust demand from central banks, expectations of rate cuts from the Federal Reserve, and growing geopolitical unrest in Middle Eastern territories and Europe. Additionally, investment in gold-backed exchange-traded funds is on the rise, reflecting strong market confidence in the bullion’s potential.

Aakash Doshi, global head of gold strategy at State Street Global Advisors, speculated that prices could test the $3,400 mark in a bullish scenario within the next nine months.

Federal Reserve officials expressed concerns about the possibility of rising unemployment, yet the specter of inflation driven by tariffs complicates their capacity for intervention.

Market participants are eagerly anticipating the ADP employment report set to be released later today, as well as the non-farm payrolls data expected on Friday, which may further influence monetary policy discussions.

In related metals, spot silver rose by 0.2% to $33.82 an ounce, while platinum and palladium made gains of 0.8% to reach $987.66 and 0.7% to hit $990.45, respectively.

As global tensions escalate and economic uncertainty looms, investors are advised to keep a close watch on these developments, as they could significantly impact market trends in the weeks ahead.