Source: Sharecast
The safe-haven asset, which climbed above $3,000 for the first time earlier this month, added another 1% to $3030.8. In the year to date, Comex gold futures have now risen 14%.
Investors are concerned that Trump’s seemingly chaotic imposition of tariffs will prompt a global trade war, sending inflation higher, weakening the dollar and pushing the US into recession.
Trump has imposed tariffs on a range of countries and goods, including a 25% levy on all steel and aluminium imports. A number of countries have retaliated, however, with the European Union and China both imposing their own tariffs in response.
Further adding to the flight to safety were renewed tensions in the Middle East.
Israel launched extensive air strikes against Hamas targets in Gaza early on Tuesday, which it said were in response to the militant group’s "repeated refusal to release our hostages". Hamas said more than 300 people had been killed and over 400 injured, and called the action "treacherous aggression".
Just days earlier, the US military had conducted its own strikes against Houthi targets in Yemen. A White House press secretary said: "Hamas, the Houthis, Iran, all those who seek to terrorise not just Israel but also the United States of America, will see a price to pay.”
Neil Wilson, analyst at TipRanks, said: "It underlines the various US data points we are looking at - higher inflation, lower growth and lower expected policy rates - which means lower real yields plus a weakening US dollar, which along with a big chunk of geopolitical tensions is ripe for gold bulls.
"Throw in tariffs and the way in which Trump is apparently tearing apart assumptions about just about everything, from DOGE to Greenland, and the uncertainty that markets so loathe is going to be good for gold."
Russ Mould, investment direct at AJ Bell, said: "The fact gold hit another new record high shows that investors are hedging their bets. They might be increasing equities exposure, but they’re also adding a form of insurance to portfolios. [It continues] a strong run for the precious metal amid a weakening dollar and concerns that Trump’s policies are going to cause economic havoc both in the US and aboard."
