Gold prices hit an all-time high on Monday, bolstered by safe-haven inflows after US President Donald Trump’s tariffs on Canada, China and Mexico added to concerns of inflation that would dent economic growth.
Spot gold rose 0.8 per cent to US$2,818.99 per ounce by Monday afternoon, after hitting a record of US$2,830.49 earlier in the session.
US gold futures settled 0.8 per cent higher at US$2,857.10.
Despite the usual dampening effect of a strong dollar on the gold market, prices have been rallying due to the safe-haven demand driven by uncertainty surrounding Trump’s tariffs , said David Meger, director of metals trading at High Ridge Futures.
The 25 per cent tariffs imposed by Trump on Canadian and Mexican imports from Tuesday, along with a 10 per cent charge on Chinese goods, fuelled fears of a trade war that could slow global growth and feed inflation.