New taxes from Trump send gold to a record high

Gold prices soared to a record high on Tuesday on safe-haven demand after U.S. President Donald Trump imposed fresh tariffs on steel and aluminium imports, which could fuel inflation further and escalate the potential for a global trade war.

Spot gold was up 0.3% at $2,916.37 per ounce as of 0701 GMT. It hit a lifetime high of $2,942.70 earlier in the session.

U.S. gold futures firmed 0.3% to $2,941.50.

Trump raised tariffs on steel and aluminium imports to 25% on Monday "without exceptions or exemptions", increasing the risk of a multi-front trade war.

The metal has logged its eighth record high so far in 2025 as investors grapple with uncertainties around U.S. trade policies.

"The risk of a global trade war is putting pressure on trading in physical bullion and driving financial markets to get exposure to gold as a part of what can be loosely described as a de-dollarisation theme," said Kyle Rodda, financial market analyst at Capital.com.

"Buyers seem to be somewhat price insensitive because dealers are doing what they can to ship gold into the U.S. to avoid any potential tariffs slapped on the metal.”

Concerns over import tariff plans materialised in U.S. gold futures , with key contracts trading at a premium to the spot price , which is currently at about $25.

The threats have ignited another gold rush, bringing the glittering $3,000 milestone into view

U.S. stocks closed higher on Monday,

Tariffs may exacerbate U.S. inflation and delay U.S. rate cuts.

Meanwhile, the Consumer Price Index (CPI) and Producer Price Index (PPI) data is scheduled for this week, while Fed Chair Jerome Powell is due to testify before Congress on Tuesday and Wednesday.

Spot silver fell 0.8% to $31.78 per ounce on Tuesday.

"While tariff fears may support silver, gains could be capped by falling industrial demand in the face of Trump's tariffs," said Lukman Otunuga, senior research analyst at FXTM.

Platinum eased 0.7% to $986.45 and palladium fell 0.4% to $979.25.