Gold breached the $3,100 level on Monday to touch an all-time high as investors turned to the safe-haven asset amid concerns that U.S. President Donald Trump’s tariff plans would widen the global trade war and trigger an economic fallout.
Spot gold added 0.9% to $3,110.81 an ounce as of 0444 GMT after hitting a record high of $3,115.79 earlier. Bullion has gained more than 8% in March.
The dollar index eased 0.2%, making greenback-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 take effect on April 3.
On Sunday, the U.S. president said he was “pissed off” at Russian President Vladimir Putin and would impose secondary tariffs of 25%-50% on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine, further escalating trade war concerns.
Gold, traditionally seen as a hedge against political and economic uncertainties, has risen more than 18% this year. The rally prompted multiple banks to increase their 2025 forecasts.
