Gold gained on Tuesday amid continued uncertainty over US President Donald Trump's tariff plans and their impact on the global economy.
Spot gold was up 0.4% at $3,221.70 an ounce, as of 0245 GMT. Bullion hit a record high of $3,245.42 on Monday.
US gold futures were up 0.4% at $3,237.60.
"Gold continues to strengthen today… on continued investor demand for defensive assets to reduce portfolio volatility as the US appears to be setting the stage for more tariffs to come," said IG market strategist Yeap Jun Rong.
The US is continuing its probe into pharmaceutical and semiconductor imports as part of efforts to impose tariffs on the two sectors, arguing that the country's extensive reliance on foreign production of medicines and chips poses a national security threat, according to a Federal Register filing on Monday.
Trump said Sunday he would announce tariffs on semiconductor imports next week, keeping market participants on edge.
With gold prices recently hitting new highs, the uptrend remains intact and as long as tariff uncertainty persists for a while longer, bullion may remain supported, Yeap said.
Meanwhile, Atlanta Federal Reserve Bank President Raphael Bostic said uncertainty around tariffs and other policies has put the economy on "a big pause," and he suggested the U.S. central bank should remain on hold until there is more clarity.
Non-yielding gold acts as a traditional hedge against global uncertainty and inflation, and it also tends to thrive in a low-interest-rate environment.
Investment into China-backed physical gold exchange-traded funds so far this month has surpassed investment for the entire first quarter and surpassed inflows recorded by U.S.-listed funds, World Gold Council data show. Spot silver fell 0.4% to $32.22 an ounce, platinum rose 0.1% to $952.60, and palladium fell 0.7% to $949.92.(Newsmaker23)
Source: Reuters
