Gold, an asset considered a safe haven in economic uncertainty periods, has done it again. The precious metal scored a fresh all-time high (ATH), with its futures contract prices reaching $3,350 this Wednesday.

The gold rise transpires during a dollar decline as the Trump administration’s tariff uncertainty after the U.S. government enacted reciprocal tariffs and paused them for 90 days to negotiate trade agreements. These inconsistent moves have made gold a to-go asset, with investors piling in and registering relevant inflows in gold exchange-traded funds (ETFs).

The fears of an impending full-blown trade war may also be benefiting gold’s performance, as there is no indication of a resolution between China and the U.S., both of which have established crippling tax rates on imports.

UBS analysts echo this marketwide sentiment. In a note issued on Monday, they stated:

The case for adding gold allocations has become more compelling than ever in this environment of escalating tariff uncertainty, weaker growth, higher inflation, geopolitical risks & diversification away from US assets & the US$.

Furthermore, analysts sustain that even with a rise of 25% YTD, gold is still poised to reach new highs as long as the current macro continues. UBS recently raised its price target for gold the second time this year, now predicting that the precious metal will reach 3,500 in the next 12 months.

Western investors and central banks, which have been purchasing gold in a flight away from the US dollar, are still underinvested, making it possible for this stellar rally to continue. ETFs are still under 2% of the total ETF numbers in the U.S. allocation, well under the nearly 8% they reached during the 2011 gold rush. So, the upswings might continue as demand continues to climb from these sources.

Read more: Arthur Hayes Highlights Shift to Gold and Bitcoin Following Trump’s New Trade Order

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