Gold prices hover near record high as Trump tariff fears boost its safe haven appeal

Gold prices are hovering around a new record high as investors rushed to put their money into the safe haven asset following US President Donald Trump's global tariff threats.

According to Bloomberg data, bullion traded near $2,935 an ounce in the global markets after earlier hitting a fresh record high of $2,947.01.

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In India, gold traded at ₹85,879 for 10 grams on the Multi Commodity Exchange (MCX) for April 2025 futures. The high was ₹86.592.

Last Tuesday, Trump pledged to impose 25% tariffs on automobile, semiconductor and pharmaceutical imports into the US.

Another aspect contributing to the rising gold prices is the escalating geopolitical tensions after senior officials from the US and Russia met for a first round of talks over the war in Ukraine.

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Ukraine President Volodymyr Zelensky was left isolated and this compounding fears that a deal to resolve the war will be reached without Kyiv’s involvement, the Bloomberg report added.

Gold climbed by more than a quarter in 2024 alone. In 2025, it hit several record highs, all fanned by Trump's trade policies.

Even Goldman Sachs raised its year-end target for gold to $3,100 an ounce earlier this week, citing that stronger-than-expected central-bank buying would be a key driver, according to the report.

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Should broader uncertainty over economic policy persist, including on tariffs, bullion could hit $3,300, it added.