By Anushree Mukherjee
(Reuters) – Gold violated the $3,100 level to bring investors to touch the record high as President Donald Trump's tariff plans expand the world trade war and cause economic fallouts as investors turned to safe assets amid concerns.
Spot Gold added 1 ounce to GMT after hitting a record high of $3,115.79, plus $3,110.81 at 0444 GMT. The bullion won over 8% in March.
The dollar index eased 0.2%, making greenback prices cheaper for buyers who hold other currencies.
“The market anxiety levels are keeping gold in demand as a defensive play ahead of the announcement of each other's tariffs,” said KCM Trade Chief Market Analyst.
“If this week's tariff announcements are not as severe as feared, gold prices could begin to recede as it could lead to profits from highs.”
Trump is scheduled to announce mutual tariffs on April 2nd, and motor vehicle rates will come into effect on April 3rd.
On Sunday, the US president said he was “offended” with Russian President Vladimir Putin, and that he would impose a 25% to 50% secondary tariff on Russian oil buyers if he felt Moscow was blocking efforts to end the war in Ukraine.
Gold, traditionally considered a hedge against political and economic uncertainty, has risen more than 18% this year. The rally has encouraged several banks to increase their forecasts for 2025.
Meanwhile, San Francisco Federal Reserve Bank Chairman Mary Daly said inflation data released Friday confirms her decline in confidence in the baseline expectation that two interest rate cuts this year are “reasonable” forecasts.
Spot Silver Rose 0.7% to 34.35 oz, Platinum stabilised at $984.07, while Palladium increased 0.5% to $976.72. All three metals are set to rise each month.
(Reporting by Anushree Mukherjee of Bengaluru, Editing by Eileen Soreng, Rashmi Aich, and Sumana Nandy)
