Gold prices advanced to an all-time high today as trade war tensions and concerns over global economic growth drove safe-haven flows following US President Donald Trump's new tariff threats.
Spot gold was up 0.3% at $2,943.25 an ounce in mid-morning trade after surging to an all-time-high of $2,946.75/oz earlier in the session. Prices scaled record for a ninth time this year.
US gold futures rose 0.4% to $2,961.
Mark O'Byrne, founder of Tara Gold and Silver, said that gold bullion is viewed as a traditional hedge against rising inflation and geopolitical uncertainties.
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Its rally appears to be driven by President Trump's remarks on upcoming tariffs for autos and pharmaceuticals, which could pave the way for a push toward $3,000.
Since taking office, Trump imposed a 10% tariff on Chinese imports, set a 25% tariff on steel and aluminum.
Adding to the tariffs agenda, the US president said today he intends to impose auto tariffs "in the neighbourhood of 25%" and similar duties on semiconductors and pharmaceutical imports.
"I don't see central banks stopping buying gold anytime soon, but rather expecting them to keep diversifying their reserves into gold and support the gold price," UBS analyst Giovanni Staunovo said.
Bullion is viewed as a hedge against rising inflation and geopolitical uncertainties, but higher rates reduce the non-yielding asset's appeal.
Meanwhile, market focus is also on the Federal Reserve's interest rate stance, with minutes of its January policy meeting due later in the day.
"Any bearish impact (on gold) from today's FOMC minutes release is expected to be short-lived," Vawda said.
Among other metals, spot silver, used in electrical components, added 0.4% to $32.99 an ounce, while auto-catalysts platinum fell 0.6% to $981.56 and palladium firmed 0.1% to $987.75.
