Investing.com-- Gold prices rose sharply in Asian trade on Thursday, rebounding from recent losses as doubts over a deescalation in the U.S.-China trade war persisted, while a new Russia-Ukraine clash also buoyed haven demand.

Gold had fallen from record highs this week after U.S. President Donald Trump raised the prospect of eventually reducing steep trade duties on China. But a lack of clarity on Trump’s comments, coupled with less optimistic statements from other officials, made gold’s fall short-lived.

Traders remained cautious towards the dollar and Treasuries, keeping gold and the Japanese yen as the main sources of safe haven.

Spot gold rose 1.3% to $3,331.34 an ounce, while gold futures expiring in June rose 1.4% to $3,341.25/oz by 01:37 ET (05:37 GMT).

JP Morgan forecast that spot prices could rise as high as $4,000/oz by next year.

Gold remains near record high amid steady haven demand

Spot prices remained in sight of a $3,500/oz record high hit earlier this week, as traders still remained largely biased towards bullion as a haven.

This trend was furthered by a sharp drop in the dollar in recent weeks, amid heightened uncertainty over the U.S. economy and a bitter trade war between Washington and Beijing.

Trump said this week that he could eventually lower his steep, 145% tariffs on China. But he said that such a move would be contingent on China coming to the negotiating table- a scenario Beijing has shown little interest in carrying out.

China retaliated with 125% tariffs against the U.S., and has shown few signs of backing down.

Comments from other members of the Trump administration also undermined optimism over a U.S.-China deescalation. Treasury Scott Bessent warned that trade talks with China could be a slog, and that the U.S. would likely need to first cut tariffs before engaging with Beijing.

Traders remained on edge over the potential impact of Trump’s tariffs, even as a report suggested he could offer some exemptions to automakers. But the dollar and Treasuries took little support from this.

Other precious metals were mixed on Thursday, but were sitting on some gains against a softer dollar in recent weeks. Platinum futures rose 0.1% to $979.75/oz, while silver futures fell 0.4% to $33.390/oz.

Among industrial metals, benchmark copper futures on the London Metal Exchange fell 0.1% to $9,371.35 a ton, while U.S. copper futures steadied at $4.8348 a pound.

Russia-Ukraine ceasefire talks waver, Moscow attacks Kyiv

Safe haven demand was also furthered by signs of increased friction in U.S.-brokered ceasefire discussions over Russia and Ukraine, especially as Moscow launched a deadly drone and missile attack on Kyiv on Wednesday.

This came as Trump lashed out against Ukrainian President Volodymyr Zelenskiy over his objection to Russia’s 2014 occupation of Crimea.

Trump’s Vice President JD Vance warned that the U.S. could exit ceasefire discussions, while several top-level U.S. officials dropped out of ceasefire talks in London this week.