Gold prices jumped more than 1 per cent on Monday to hit a record high, as safe-haven demand surged on fears of a global trade war after US President Donald Trump announced new tariff plans, reports Reuters.
Spot gold was up 1.5 per cent to $2,903.19 per ounce, as of 1153 GMT, after hitting a record high of $2,905.98 earlier in the session - its seventh record this year.
US gold futures rose 1.5 per cent to $2,929.70.
"The precious metal is set to retain its upward bias, as long as President Trump's policy threats continue to stoke fear and uncertainty through global financial markets," said Exinity Group chief market analyst Han Tan.
Trump announced on Sunday plans to impose an additional 25 per cent tariff on all steel and aluminium imports. He also said he will announce reciprocal tariffs this week, matching rates imposed by other countries and applying them immediately.
This week, investors will also focus on the US Consumer Price Index (CPI) and Producer Price Index (PPI) data, due later in the week, which could provide insight into the US interest rate trajectory.
Gold is considered a safe investment during economic and geopolitical turmoil, but higher interest rates reduce the non-yielding asset's appeal. "Should the incoming US CPI produce a hotter-than-expected print, further delaying the next Fed rate cut, that could prompt some immediate profit-taking in spot gold," Exinity Group's Tan said.
Elsewhere, the amount of gold stored in the London vaults fell 1.7 per cent month on month to 8,535 metric tons worth $771.6 billion in January due to a rush in shipments to the United States, the London Bullion Market Association said.
Spot silver rose 1.3 per cent to $32.22 per ounce after hitting a three-month high on Friday.
Platinum added 0.7 per cent to $983.38 and palladium gained 0.8 per cent to $972.50.
