Gold Climbs Higher As Tariff Concerns Drive Demand

Gold surged to a record high on Tuesday, surpassing the 3,000 milestone as escalating global uncertainties and trade tensions fueled demand for the safe-haven asset.

Spot gold climbed 0.6 to 3,017.84 per ounce as of 0715 GMT after briefly reaching an all-time high of 3,018.66. The metal first breached the 3,000 threshold on March 14. Meanwhile, U.S. gold futures advanced 0.7 to 3,027.00.

Widely regarded as a hedge against geopolitical and economic instability, gold has gained over 14 since the beginning of the year. The precious metal has set 14 record highs since U.S. President Donald Trump took office in January, with his ongoing tariff war stoking investor concerns. The trade measures include a 25 duty on steel and aluminium implemented in February, along with additional sectoral tariffs set to take effect on April 2.

While gold may face some consolidation due to the speed of its latest move, the combination of geopolitical and geo-economic uncertainty, rising inflation, lower rates and a weaker U.S. dollar continue to provide powerful tailwind to investment demand, analysts at the World Gold Council WGC said.

The U.S. dollar hovered near a four-month low, making gold more attractive to foreign buyers.