Gold hits all-time high as Trump's tariff plans stir inflation worries

Gold prices reached a record high on Tuesday. Concerns about U.S. President Donald Trump's tariffs increased safe-haven demand. These tariffs may fuel inflation and slow economic growth.

Spot gold rose 0.6% to $3,142.83 an ounce at 0310 GMT. Earlier, it hit an all-time high of $3,145.38 during the session. U.S. gold futures increased by 0.7% to $3,171.80.

In the previous session, bullion had its strongest quarter since 1986. This marked one of the largest increases in gold's history.

IG market strategist Yeap Jun Rong noted that anticipation of tariffs has made investors cautious. Many are turning to safe-haven gold as a hedge against volatility.

Technical indicators suggest overextension in the short term. However, uncertainty around tariffs may keep gold prices strong for now.

Trump plans to announce a significant tariff plan on Wednesday, calling it "Liberation Day." This plan will affect all nations with reciprocal tariffs.

Markets are also watching automobile tariffs set to begin on April 3. Bullion is often seen as a hedge against geopolitical and economic instability.

It performs well in low-interest-rate environments. New York Federal Reserve President John Williams stated that current interest rates will remain for some time.

This allows officials to analyze incoming data before making decisions. Key U.S. data this week includes job openings and employment reports that could influence Fed policy.

Spot silver rose 0.2% to $34.13 an ounce, while platinum remained flat at $992.70. Palladium gained 0.8%, reaching $990.34.