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Gold prices surged to new record highs in Asian trading on Tuesday as persistent concerns over rising tariffs under U.S. President Donald Trump fueled demand for safe-haven assets.

The yellow metal significantly outperformed other commodities, shrugging off a strong dollar after Trump signed orders imposing a 25% tariff on all steel and aluminum imports into the U.S. He also hinted at the possibility of further trade tariffs later this week.

Rising geopolitical tensions also boosted gold demand, as Trump demanded that Hamas release all Israeli hostages by the end of the week, warning of severe consequences.

Gold continued its upward momentum today following record-breaking trades at the beginning of the week. It surpassed the $2,900 mark yesterday, with futures reaching an all-time high of $2,968.39 per ounce. As of 11:00 AM Riyadh time, gold futures were trading at $2,940.79 per ounce.

Spot gold is also up 0.24% today, trading at $2,915.12 per ounce, after hitting a historic peak of $2,942.69 yesterday before pulling back slightly.

Analysts at Citi and UBS have adjusted their 2025 gold forecasts, predicting the metal will close the year at $3,000. However, experts like Omar Al-Sayeh believe gold could surpass $3,000 and reach $3,100 soon.

Trump Imposes 25% Tariff on Steel and Aluminum

On Monday, Trump signed an executive order imposing a 25% tariff on all steel and aluminum imports, marking the latest in a series of trade restrictions. These new tariffs are set to take effect by March 12.

Trump also hinted at increasing tariffs on essential goods, stating that he would unveil plans for reciprocal tariffs against key U.S. trading partners this week.

This move follows last week's decision to impose a 10% tariff on Chinese goods, sparking outrage in Beijing and raising the prospect of retaliatory measures.

Markets fear that further tariff hikes could escalate the brewing trade war between the world's largest economies, disrupting global trade and slowing economic growth. This uncertainty has driven investors toward safe-haven assets like gold.

Traders are also concerned that Trump’s tariffs—ultimately paid by U.S. importers—could drive inflation higher in the coming months. The U.S. Consumer Price Index (CPI) inflation data for January, set for release on Wednesday, is expected to provide further insight into inflation trends and potential interest rate changes.

Precious and Industrial Metals React to Tariffs

Other precious metals did not see the same bullish momentum as gold, as the U.S. dollar strengthened following Trump’s tariff announcement. Platinum futures dropped slightly to $1,035.50 per ounce, while silver contracts fell 0.5% to $32.343 per ounce.

Industrial metals were also affected, with London Metal Exchange copper futures dropping 0.6% to $9,411.25 per ton. March copper contracts declined 0.3% to $4.6788 per pound.

Trump Threatens "All Hell Will Break Loose" Over Gaza Hostages

Trump further escalated tensions in the Middle East by warning that "all hell will break loose" against Hamas if the group does not release all Israeli hostages by Saturday.

He suggested that if the hostages are not returned, he would push for the cancellation of the ceasefire recently signed between Israel and Hamas. This comes after Hamas paused the release of certain Israeli hostages, claiming Israel had violated the ceasefire agreement.

Trump’s statements have intensified fears of a broader escalation in the Middle East conflict. He had previously proposed relocating Palestinians from Gaza to neighboring Arab countries—an idea widely rejected across the region.