Spot gold was up 1.1% at $2,939.80 per ounce, as of 0229 GMT, after hitting a record high of $2,942.70 earlier in the session.

US gold futures also climbed 1.1% to $2,966.00.

Trump substantially raised tariffs on steel and aluminum imports on Monday to a flat 25% “without exceptions or exemptions” in a move to aid the struggling industries but which increases the risk of a multi-front trade war.

Gold has hit an eighth record-high level so far this year, driven by Trump’s tariff threats, which have fuelled global growth uncertainties, trade war concerns, and inflationary pressure.

Bullion is traditionally considered a hedge during political and economical instability.

“The risk of a global trade war is putting pressure on trading in physical bullion and driving financial markets to get exposure to gold as a part of what can be loosely described as a de-dollarisation theme,” said Kyle Rodda, financial market analyst, Capital.com.

“Buyers seem to be somewhat price insensitive because dealers are doing what they can to ship gold into the US to avoid any potential tariffs slapped on the metal.”

Concerns over import tariff plans materialised in US gold futures, with key contracts trading at a premium to the spot price, currently at about $26.

The threats have ignited another gold rush, propelling the safe-haven metal to new heights and bringing the glittering $3,000 milestone into view.

Tariffs may exacerbate US inflation, with investors awaiting US Consumer Price Index (CPI) on Wednesday and Producer Price Index (PPI) data on Thursday.

Federal Reserve Chair Jerome Powell is also due to testify before Congress on Tuesday and Wednesday.

Spot silver firmed 0.4% to $32.16 per ounce.

“While tariff fears may support silver, gains could be capped by falling industrial demand in the face of Trump’s tariffs,” said FXTM senior research analyst Lukman Otunuga.

Platinum eased 0.4% to $989.50, while palladium rose 0.4% to $986.97.