Gold futures hit record high as US tariffs spark trade tensions

NEW DELHI, Mar 27 (Reuters): US gold futures scaled a record peak on Thursday, as investors sought the safe-haven asset in response to escalating global trade tensions and tumbling equity markets following US President Donald Trump's announcement of new auto tariffs.

US gold futures climbed 1.1 per cent to $3,056.10, after hitting an all-time high of $3,065.50 earlier in the session, while spot gold rose $3,047.89 an ounce as of 09:10 am.

Gold is traditionally seen as a hedge against economic and political uncertainty and often thrives in a low-interest rate environment. Gold spot prices have hit 16 record highs this year, reaching an all-time peak of $3,057.21 on March 20.

"Looks like we're going to see (gold futures hit) $3100 here shortly and the main catalyst is safe-haven buying," driven by uncertainty around Trump's tariff plans, said Bob Haberkorn, senior market strategist at RJO Futures.

Governments from Ottawa to Paris threatened retaliation after Trump unveiled a 25 per cent tariff on imported vehicles, set to come into effect the day after he plans to announce reciprocal tariffs, aimed at the countries he says are responsible for the bulk of the US trade deficit.

Spot silver rose 0.6 per cent to $33.90 an ounce, platinum fell 0.5 per cent to $970.25 and palladium added 0.4 per cent to $972.42.