Ammon News - Gold prices hit a record high on Wednesday, bolstered by fears of a new trade war between the United States and China after Beijing slapped tariffs on U.S. imports in response to new U.S. duties on Chinese goods.

Spot gold rose 0.5% to $2,855.32 per ounce by 0501 GMT, after hitting a record high of $2,858.12 earlier in the session. U.S. gold futures gained 0.3% to $2,884.60.

While gold is considered an inflation hedge, higher interest rates could dampen its appeal as the metal yields no interest.

Investors this week are watching out for the ADP employment report due at 1315 GMT and the payrolls report on Friday, which could shed more light on health of the U.S. economy.

"Gold demand ought to be partially supportive for other precious metals but their sensitivity to risk appetite has seen them underperform," Spivak said.

Spot silver rose 0.5% to $32.26 per ounce and platinum gained 0.8% to $970.95. Palladium fell 0.3% to $987.48. Reuters