Gold Breaks to Record High as U.S.-China Tensions Escalate, Nvidia and ASML Issue Warnings

Gold futures officially broke above the $3,300 mark for the first time, hitting a new record high as traders sought safety amid escalating U.S.-China trade tensions and renewed concerns in the semiconductor sector.

Nvidia on Tuesday warned it will take a quarterly charge of approximately $5.5 billion related to halted exports of its H20 GPU to China and other destinations. The move follows a U.S. government requirement for licenses to export high-end chips to certain regions—restrictions that are set to remain in place indefinitely. The announcement heightened fears of a deeper decoupling between the world's two largest economies, which have already imposed tariffs on each other reaching triple-digit percentages, nearly derailing a comprehensive trade deal.

Adding to the uncertainty, Dutch semiconductor equipment giant ASML reported disappointing net bookings of €3.94 billion, significantly below the €4.89 billion figure from the previous quarter. The company warned that the latest round of U.S. export controls could impact demand for its crucial chipmaking tools.

Meanwhile, the U.S. Commerce Department launched national security investigations into semiconductor and pharmaceutical imports, marking a renewed effort by the Trump administration to tighten control over critical supply chains. Given that most of these products are manufactured in China, the probe casts a cloud over trade relations and investor sentiment.

In Europe, the EU expects most U.S. tariffs to remain in place, with little progress in ongoing trade talks, further compounding global trade uncertainty.

Amid these geopolitical and economic risks, traders are now closely watching upcoming U.S. March retail sales data and a speech from Federal Reserve Chair Jerome Powell for clues on the health of the U.S. economy and the central bank's rate path.

From a technical standpoint, gold's daily chart shows that the 14-day RSI has re-entered overbought territory, now hovering near 76—suggesting the rally may be overstretched. However, if gold manages a daily close above $3,275/oz, the $3,300 breakout could prove sustainable, potentially opening the door to the next psychological level at $3,350/oz.