PRECIOUS-Gold hits record high on weak dollar, trade war woes

April 21(Reuters) - Gold touched a record high on Monday as the dollar sank to a three-year low and trade war concerns between the United States and key trading partners stirred recession fears, making investors lean towards the safe-haven asset.

FUNDAMENTALS

Spot gold XAU= advanced 1% to $3,361.53 an ounce as of 0037 GMT. U.S. gold futures GCcv1 firmed 1.4% to $3,375.90.

The dollar index .DXY hit a three-year low, making gold more attractive for other currency holders. USD/

On Sunday, a Boeing BA.N jet intended for use by a Chinese airline landed back at the plane maker's U.S. production hub, a victim of the tit-for-tat bilateral tariffs launched by U.S. President Donald Trump in his global trade offensive.

Last week, Trump ordered a probe into the potential new tariffs on all U.S. critical minerals imports, a major escalation in his dispute with global trade partners and an attempt to pressure industry leader China.

Gold, traditionally seen as a hedge against political and economic uncertainties and inflation, has risen more than 27% year-to-date.

Meanwhile, White House economic adviser Kevin Hassett said on Friday Trump and his team were studying if they could fire Federal Reserve Chair Jerome Powell, a sign that such a move, a matter of great consequence for the central bank's independence and global markets, is still an option.

The demand for physical gold was tepid in India last week as a blistering price rally curbed purchases, while premiums held firm in top consumer China. GOL/AS

Spot silver XAG= added 0.1% to $32.63 an ounce, platinum XPT= gained 0.2% to $969.20, while palladium XPD= fell 0.3% to $959.20.

DATA/EVENTS (GMT)

0100 China Loan Prime Rate 1Y,5Y Apr