Gold rises, hovers near record high as demand picks up

Gold prices rose on Tuesday, hovering near a record high hit in the previous session, as investors sought refuge in the precious metal as a safe haven after US President Donald Trump’s decision to impose new tariffs raised fears of a global trade war.

Spot gold was up 0.3% at $2,868.66 an ounce by 00:05 GMT, after hitting an all-time high of $2,886.62 on Friday. US gold futures were up 0.2% at $2,894.00, according to Reuters.

Trump said he would announce new 25% tariffs on all steel and aluminium imports into the United States on Wednesday, in addition to existing tariffs on metals, in another major escalation of his trade policy.

“Trade tensions are still very much in play and could push gold prices to $2,900-$2,910 in the near term,” said Kelvin Wong, senior market analyst for Asia-Pacific at OANDA.