BENGALURU- Gold touched an all-time high on Monday, breaching the $3,100 level, as investors turned to the safe-haven asset amid concerns that US President Donald Trump’s tariff plans would stoke a global trade war and economic fallout.
Spot gold was up 0.6 percent to $3,103.63 an ounce, after hitting a record high of $3,107.26 earlier. Bullion is up over 8 percent in March.
The dollar index eased 0.2 percent, making dollar-priced gold less expensive for buyers holding other currencies.
“Markets anxiety levels have been ramping up ahead of the reciprocal US tariff announcements, which is keeping gold in high demand as a defensive play,” KCM Trade chief market analyst, Tim Waterer said.
“If the tariff announcements this week are not as severe as feared, then the gold price could start to backtrack as profit-taking from the highs may be triggered.”
Trump is expected to announce reciprocal tariffs on April 2, while auto tariffs will commence on April 3.
Further widening the global trade war concerns, Trump said on Sunday he was “pissed off” at Russian President Vladimir Putin and will impose secondary tariffs of 25 percent to 50 percent on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.
