GOLD touched an all-time high on Monday, breaching the $3,100 level, as investors turned to the safe-haven asset amid concerns that U.S. President Donald Trump's tariff plans would stoke a global trade war and economic fallout.
Spot gold was up 0.6% to $3,103.63 an ounce, as of 0255 GMT, after hitting a record high of $3,107.26 earlier. Bullion is up over 8% in March.
The dollar index eased 0.2%, making dollar-priced gold less expensive for buyers holding other currencies.
“Markets anxiety levels have been ramping up ahead of the reciprocal U.S. tariff announcements, which is keeping gold in high demand as a defensive play,“ KCM Trade chief market analyst, Tim Waterer said.
“If the tariff announcements this week are not as severe as feared, then the gold price could start to backtrack as profit-taking from the highs may be triggered.”
Trump is expected to announce reciprocal tariffs on April 2, while auto tariffs will commence on April 3.
Further widening the global trade war concerns, Trump said on Sunday he was “pissed off” at Russian President Vladimir Putin and will impose secondary tariffs of 25% to 50% on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.
Gold, traditionally seen as a hedge against political and economic uncertainty, has risen over 18% this year. Bullion's rally has prompted multiple banks to increase their 2025 gold price forecasts.
Meanwhile, San Francisco Federal Reserve Bank President Mary Daly said inflation data published on Friday confirms her decreased confidence in her baseline expectation that two interest rate cuts this year are a “reasonable” projection.
Spot silver rose 0.4% to $34.23 an ounce, platinum was steady at $983.51 and palladium gained 0.4% to $975.70. All three metals are set for a monthly rise. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Eileen Soreng and Rashmi Aich)
