(RTTNews) - After a slight dip in the previous session, gold prices made a significant rebound during trading on Wednesday.

April gold futures rose by $21, or 0.7%, to reach $3,139.90 an ounce, recovering from a $3.90, or 0.1%, decline to $3,118.90 an ounce on Tuesday.

The increase in gold prices more than compensated for Tuesday's modest decrease, setting a new record closing high.

Gold's rise was driven by its status as a safe haven asset amidst concerns regarding the potential effects of President Donald Trump's retaliatory tariffs on U.S. trading partners.

Trump is expected to unveil the new tariffs at a Rose Garden event shortly after the trading session concludes, with White House press secretary Karoline Leavitt stating that the new measures will be "effective immediately."

While reports indicated that Trump's team was fine-tuning the details shortly before the announcement, a White House official confirmed to CNBC's Megan Cassella that the president has made a final determination on the course of action.

The rise in gold prices was also supported by a decline in the U.S. dollar, as the U.S. dollar index dropped by 0.4%.

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On Wednesday, gold prices saw a significant rebound following a slight decline from the previous trading session. In the April delivery market, gold rose by $21, or approximately 0.7%, reaching $3,139.90 an ounce after having dipped by $3.90, or 0.1%, to $3,118.90 an ounce the day prior. This upward movement not only reversed the minor loss from Tuesday but also set a new record for gold's closing prices.

The increase in gold's price can be attributed to its status as a safe-haven asset amidst rising uncertainties regarding U.S. trade policies, particularly in light of President Donald Trump's forthcoming announcement of reciprocal tariffs against U.S. trade partners. The announcement was expected to come shortly after the trading day ended, and White House Press Secretary Karoline Leavitt indicated that the new tariffs would take effect immediately.

In the lead-up to the announcement, reports emerged that Trump's administration was still finalizing the specifics of the tariffs. However, a White House official conveyed to CNBC that the president had made a definitive decision regarding the implementation of tariffs.

Compounding gold's price increase was a concurrent decline in the value of the U.S. dollar. The U.S. dollar index fell by 0.4%, making gold more attractive to investors holding other currencies. Typically, as the dollar weakens, gold prices tend to rise, as the commodity becomes less expensive for foreign investors.

In summary, gold's notable rise on Wednesday reflects both its robust appeal as a safe haven investment amid trade policy uncertainties and the impact of fluctuations in the U.S. dollar's value.