Safe-haven gold hits record peak as Trump announces sweeping tariffs

Gold hit a record high on Thursday, as nervous investors rushed towards safe-haven assets after US President Donald Trump announced more aggressive-than-anticipated tariffs against major trading partners, widening the global trade war.

Spot gold was up 0.4 percent at US$3,145.93 (HK$24,538.25) an ounce, as of 0018 GMT, after hitting an all-time high of US$3,167.57 earlier in the session.

US gold futures firmed 0.1 percent at US$3,170.70.

Trump said on Wednesday that he would impose a 10 percent baseline tariff on all imports to the US and higher duties on dozens of other countries, including some of the United States' biggest trading partners, deepening a trade war that has rattled global markets and bewildered US allies.

Trump's administration also confirmed that his 25 percent global car and truck tariffs will take effect as scheduled on April 3 and that duties on automotive parts imports will be launched on May 3.

Gold, traditionally seen as a hedge against political and financial uncertainty, has surged over 19 percent so far this year, on the back of uncertainty surrounding tariffs, potential for interest rate cuts, geopolitical conflicts and central bank buying.

Meanwhile, US private payrolls increased more than expected in March, but that did not change economists' views that the labor market was slowing against the backdrop of mounting economic uncertainty due to tariffs.

All eyes are on the US non-farm payrolls report, due Friday, for further clues on the Federal Reserve's monetary policy path.

Spot silver slipped 1.2 percent to US$33.61 an ounce, while platinum fell 0.8 percent to US$975.93 and palladium lost 0.6 percent to US$964.56.

REUTERS