Gold crosses US$3,100 for first time as expected US tariff barrage boosts safe havens

Canberra – Gold started the week with a fresh record high, ahead of US President Donald Trump’s expected latest tariff barrage that has heightened concerns of a global trade war.

Bullion gained as much as 0.8 per cent to top US$3,110 an ounce, beating the previous all-time high set on March 29 when it recorded a fourth weekly gain, with prices supported by growing investor demand for safe havens.

Mr Trump said on March 31 that reciprocal tariffs he is set to announce on April 2 will include all nations, not just a smaller group of 10 to 15 countries with the biggest trade imbalances.

He has already imposed tariffs on aluminum, steel and autos, along with increased tariffs on all goods from China.

Gold is up about 18 per cent so far in 2025, in a run that has seen it clinch at least 15 all-time highs.

The rally has been fuelled by central bank buying and haven demand amid rising geopolitical and macro uncertainties. These drivers have supported prices even as swaps traders have pared bets on the US Federal Reserve easing in 2025 to two quarter-point rate cuts. Lower rates tend to benefit non-yielding bullion.

Several major banks have raised their price targets for the precious metal, with Goldman Sachs this week ramping up its forecast to US$3,300 an ounce by year end. The lender cited higher-than-expected central bank demand and strong inflows into bullion-backed exchange traded funds.

Spot gold was trading at US$3,110.07 an ounce as at 11.06am in Singapore. The Bloomberg Dollar Spot Index eased 0.2 per cent. Silver, platinum and platinum also gained. BLOOMBERG