Gold hits new record highs as US tariffs trigger an increase in demand

Gold prices surged to a record high on Monday, driven by safe-haven demand amid concerns over US President Donald Trump's tariff plans and a weakening US dollar index.

Spot gold rose 0.5 percent to $2951.19 an ounce on Monday, hitting $2,956.15 earlier in the session — its eleventh record high in 2025.

Prices holding around $2950 per ounce are drawing investor focus toward the $3000 mark, with the metal up more than 12 percent in 2025.

The recent tariff plans announced by the US are broadly viewed as inflationary and capable of sparking trade wars, thereby increasing the demand for safe-haven assets like bullion.

During a press conference on Monday, Trump reaffirmed that tariffs on Mexico and Canada would proceed as scheduled following a one-month delay, which is set to expire next week.

The dollar index on Monday touched its lowest level since December 10, making bullion more affordable for buyers using other currencies. The index, which measures the greenback against six major peers, closed 0.01 percent lower this Monday at 106.597.

(with input from Xinhua, Reuters)