GOLD prices soared to a record high on Tuesday (Feb 11), as investors flocked to the safe-haven asset after US President Donald Trump imposed new 25 per cent tariffs on steel and aluminium imports, fuelling concerns over a potential trade war and inflation.
Spot gold was up 0.4 per cent at US$2,919.90 per ounce, as at 0038 GMT, after hitting a record high of US$2,921.15 earlier in the session.
US gold futures gained 0.3 per cent to US$2,944.40.
Trump substantially raised tariffs on steel and aluminium imports on Monday to a flat 25 per cent “without exceptions or exemptions” in a move to aid the struggling industries but which increases the risk of a multi-front trade war.
Bullion has hit its eighth record high this year, driven by Trump’s tariff threats, which have fuelled global growth uncertainties, trade war concerns, and inflationary pressure.
The threats have ignited another gold rush, propelling the safe-haven metal to new heights and bringing the glittering US$3,000 milestone into view.
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Tariffs may exacerbate US inflation, with investors awaiting US Consumer Price Index on Wednesday and Producer Price Index data on Thursday.
Federal Reserve chair Jerome Powell is also due to testify before Congress on Tuesday and Wednesday.
On the geopolitical front, Hamas announced on Monday that it would stop releasing Israeli hostages until further notice over what the Palestinian militant group called Israeli violations of a ceasefire agreement in Gaza, raising the risk of reigniting the conflict.
Spot silver firmed 0.3 per cent to US$32.12 per ounce and platinum was steady at US$993.80, while palladium fell 0.3 per cent to US$979.88. REUTERS
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