Gold prices soared to an all-time high on Monday, surpassing $3,100 as investors sought safe-haven assets amid growing concerns over U.S. President Donald Trump’s tariff policies. Spot gold climbed 0.6% to $3,103.63 per ounce as of 0255 GMT, after reaching a peak of $3,107.26 earlier in the session. March has seen an 8% rise in bullion prices.
The U.S. dollar index weakened by 0.2%, making gold more affordable for international buyers.
Market Anxiety Over Tariffs
Investor uncertainty has intensified ahead of upcoming U.S. tariff announcements. KCM Trade chief market analyst Tim Waterer noted, “Market anxiety levels have been ramping up ahead of the reciprocal U.S. tariff announcements, which is keeping gold in high demand as a defensive play.” However, he suggested that if the tariffs turn out to be less severe than expected, gold prices may retreat as investors take profits.
Trump is set to announce reciprocal tariffs on April 2, with auto tariffs scheduled to follow on April 3. Adding to global trade tensions, Trump stated on Sunday that he was “pissed off” at Russian President Vladimir Putin and threatened secondary tariffs of 25% to 50% on buyers of Russian oil if he believes Moscow is obstructing his efforts to end the war in Ukraine.
Gold’s Role in Economic Uncertainty
Gold, traditionally considered a hedge against political and economic instability, has risen more than 18% this year. This rally has prompted several major banks to revise their 2025 gold price forecasts upward.
Meanwhile, San Francisco Federal Reserve Bank President Mary Daly expressed uncertainty about the likelihood of two interest rate cuts in 2025, following inflation data released last Friday.
Other precious metals also showed gains, with spot silver rising 0.4% to $34.23 per ounce, platinum holding steady at $983.51, and palladium increasing 0.4% to $975.70. All three metals are on track for monthly gains.