Gold Hits Record High Amid Market Volatility

Gold experienced a volatile trading session, surging to a record high before paring gains, following President Donald Trump’s decision to impose tariffs on U.S. steel and aluminum imports.

Gold has surged approximately 11% this year, setting multiple records, as Trump’s disruptive trade and geopolitical policies reinforce its status as a safe-haven asset.

The move added further uncertainty to global markets, Bloomberg News’ Sybilla Gross reported.

Bullion briefly set a fresh peak above $2,942 an ounce before retreating. Trump stated that the latest round of tariffs, set to take effect on March 4, aims to bolster domestic production and create more U.S. jobs.

He also warned that the tariffs “may go higher.” Gold has surged approximately 11% this year, setting multiple records, as Trump’s disruptive trade and geopolitical policies reinforce its status as a safe-haven asset.

Meanwhile, traders are closely monitoring the potential economic and monetary policy implications of the White House’s decisions, particularly regarding inflation and economic growth.

Investors are also looking ahead to Federal Reserve Chair Jerome Powell’s testimony before Congress for insights into future monetary policy.

Short-term U.S. inflation expectations have risen above longer-term ones to the widest gap since 2023, with the five-year breakeven rate hitting 2.64% on Monday. This trend could support a slower pace of interest rate cuts—typically a bearish signal for gold, as the metal does not yield interest.