Gold Hits Record Highs as Safe-Haven Demand Surges

Gold prices soared to fresh record highs in Asian trade on Tuesday, driven by escalating trade war fears and geopolitical tensions under U.S. President Donald Trump.

• Spot gold reached a record high of $2,942.69/oz.
• Gold futures peaked at $2,968.39/oz before slightly retreating.

Key Market Drivers:

1. U.S. Trade Tariffs Spark Economic Uncertainty
   • Trump signed 25% tariffs on steel and aluminum imports, effective March 12.
   • More reciprocal tariffs expected this week, heightening trade war fears.
   • Tariffs on Chinese goods already in place (10%), prompting retaliation from Beijing.
   • Market fears that escalating tariffs will disrupt global trade and fuel inflation.
2. Geopolitical Tensions Fuel Safe-Haven Demand
   • Trump’s ultimatum to Hamas: Return Israeli hostages by Saturday or face severe consequences.
   • Potential cancellation of Israel-Hamas ceasefire raises risks of broader conflict.
   • Middle Eastern tensions push investors toward gold as a hedge.

Other Metals & Market Reactions

• Platinum: Down to $1,035.50/oz
• Silver: Down 0.5% to $32.343/oz
• Copper: Down 0.6% to $9,411.25/ton (London Metal Exchange)
• March Copper Futures: Down 0.3% to $4.6788/lb

Outlook:

• Gold remains strong as investors hedge against inflation, trade uncertainty, and geopolitical risks.
• Markets await U.S. inflation data on Wednesday, which will shape expectations for Federal Reserve policy.
• Further volatility expected if Trump announces additional tariffs or tensions escalate in the Middle East.