Bengaluru — Gold prices hit a record high on Tuesday, spurred by safe-haven demand as US President Donald Trump’s new tariffs on steel and aluminium imports heightened concerns about a possible global trade war.
Spot gold hit a peak of $2,942.70/oz in Asian trading hours before easing to stand 0.1% lower at $2,904.59 in morning trade.
Bullion’s eighth record high of 2025 has brought the glittering $3,000 milestone into view as investors navigate growing uncertainties over the repercussions of US trade policies.
US gold futures fell 0.1% to $2,932.20/oz trading at a premium over the spot price, which is now about $2,800.
“Uncertainty and unpredictability about Trump’s presidency could sweeten appetite for gold,” said Lukman Otunuga, senior research analyst at FXTM.
Trump raised tariffs on steel and aluminium imports to a flat 25% “without exceptions or exemptions” in a move he hopes will aid struggling industries in the US but which also risks sparking a multi-front trade war.
Reuters technical analyst Wang Tao said that gold may extend gains to $2,950/oz to $2,962/oz before reversing its uptrend.
Traders are keeping an eye on Federal Reserve chair Jerome Powell’s testimony and Wednesday’s US inflation data for fresh clues on the interest rate outlook in the world’s largest economy.
A Reuters poll showed the Fed was expected to wait until next quarter before cutting rates again. Tariffs could fuel US inflation and postpone rate cuts.