By Daksh Grover
(Reuters) – Gold prices hit a record high on Tuesday, spurred by safe-haven demand as U.S. 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 per ounce in Asian trading hours before easing to stand 0.1% lower at $2,904.59 as of 1118 GMT.
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 U.S. trade policies.
U.S. gold futures fell 0.1% to $2,932.20, trading at a premium over the spot price, which is currently around $28.
“Uncertainty and unpredictability about Trump’s presidency could sweeten appetite for gold,” said Lukman Otunuga, senior research analyst at FXTM.
Trump substantially 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 United States but which also risks sparking a multi-front trade war.
Reuters technical analyst Wang Tao said that gold may extend gains into $2,950 to $2,962 per ounce before reversing its uptrend.
Traders are keeping an eye on Federal Reserve Chair Jerome Powell’s testimony and Wednesday’s U.S. 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 U.S. inflation and postpone rate cuts.
Any surprise in Powell’s testimony or a downside surprise in the CPI report may cause gold to experience a technical correction, added Otunuga.
Bullion is considered a hedge against inflation but higher interest rates dampen the non-yielding asset’s appeal.
Elsewhere, gold leasing rates in India hit a record high, tracking the overseas market, where rates have jumped due to a supply crunch as banks divert the precious metal to the United States in a bid to avoid potential tariffs.
Among other metals, spot silver fell nearly 1% to $31.73 per ounce, platinum eased 1.2% to $982.20 and palladium shed 1.1% to $972.45.
(Reporting by Daksh Grover in Bengaluru; Editing by Christina Fincher)
