Gold surpassed the $3,100 mark on Monday, reaching an all-time high. This happened as investors turned to the safe-haven asset amid fears that US President Donald Trump's tariff plans would expand a global trade war and trigger economic consequences, UNN reports with reference to Reuters.
Details
Spot gold added 0.9% to $3,110.81 per ounce after hitting a record high of $3,115.79 earlier. In March, the bullion rose by more than 8%.
The dollar index (.DXY) fell by 0.2%, making dollar-denominated gold less expensive for buyers holding other currencies.
"The level of concern in the markets is rising ahead of reciprocal tariff announcements in the US, which supports high demand for gold as a defensive play," said KCM Trade chief market analyst Tim Waterer.
"If the tariff announcements this week are not as severe as feared, then the price of gold could start to retreat as profit-taking from the highs could kick in," Tim Waterer added.
Trump is expected to announce reciprocal tariffs on April 2, with auto tariffs taking effect on April 3.
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Supplement
On Sunday, the US President said he was "furious" with Russian President Vladimir Putin and would impose additional tariffs of 25%-50% on buyers of Russian oil if he felt Moscow was blocking his efforts to end the war against Ukraine. This further exacerbates concerns about a trade war.
Gold, traditionally seen as a hedge against political and economic uncertainty, has risen by more than 18% this year. The rally has prompted several banks to raise their 2025 forecasts.
Meanwhile, San Francisco Federal Reserve Bank President Mary Daly said that inflation data released on Friday reinforced her declining confidence that two interest rate cuts this year are a "reasonable" forecast.
Spot silver rose 0.7% to $34.35 an ounce, platinum remained stable at $984.07, and palladium rose 0.5% to $976.72. All three metals are set for monthly gains.
Recall
Oil is falling in price, as the market weighs conflicting statements by President Trump regarding the possibility of imposing new sanctions on Russian oil. This will happen if Putin refuses a ceasefire with Ukraine.