- Gold prices rose to new record levels in Asian trading on Tuesday, as ongoing concerns over increased tariffs under U.S. President Donald Trump’s administration drove strong demand for gold as a safe haven.

- The yellow metal greatly outperformed other metals, shrugging off the strength of the dollar after Trump signed orders imposing 25% tariffs on all steel and aluminum imports into the U.S.

- Trump also raised the prospect of imposing more tariffs this week.

- Spot gold hit a record high of $2,942.69 an ounce, while gold futures surged to a peak of $2,968.39 an ounce, before trading slightly below those levels.

- On Monday, Trump signed an executive order imposing 25% tariffs on all steel and aluminum imports, the latest in his series of trade tariffs. These new tariffs will be effective by March 12.

- The U.S. President stated that he might raise tariffs on these goods further and also mentioned that he would reveal plans for reciprocal tariffs against major U.S. trading partners this week.

- This comes just a week after Trump imposed a 10% tariff on China, which angered Beijing and led to retaliatory measures.

- Investors fear that more tariffs from Trump could deepen the escalating trade war between the world’s largest economies, leading to disruptions in global trade and affecting economic activity. This concern has driven traders into safe havens like gold.

- Traders also fear that the tariffs imposed by Trump – which U.S. importers will pay – will lead to higher inflation in the coming months. Inflation data for the Consumer Price Index (CPI) for January, due on Wednesday, is expected to provide further signals regarding inflation and interest rates.

- On the other hand, platinum futures fell slightly to $1,035.50 an ounce, while silver futures dropped 0.5% to $32.343 an ounce.

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