Gold hit another record high above $3,000 on Tuesday, with investors seeking the metal as a haven from risk as conflict flared in the Middle East and US President Donald Trump pressed on with tariff plans.
Spot gold hit a peak of $3,028.24 in early trade, and by 0927 was up 0.7% at $3,023.30 an ounce. Prices climbed above $3,000 for the first time on March 14. US gold futures gained 0.9% to $3,032.
"There is a perfect storm of gold-supporting factors," said Ole Hansen, head of commodity strategy at Saxo Bank. "The latest focus is the Middle East concerns that come on top of economic concerns about the direction of the US."
Bullion, which is considered a hedge against geopolitical and economic instability, has gained more than 14% year-to-date and has struck record highs 14 times this year, according to Reuters.
Israeli airstrikes pounded Gaza, killing 326 people, Palestinian health authorities said on Tuesday, and collapsing a two-month ceasefire with Hamas.
Elsewhere, Donald Trump has floated plans for a series of US tariffs, including a flat 25% duty on steel and aluminium which came into effect in February, as well as reciprocal and sectoral tariffs that he said will be imposed on April 2.
Spotlight was also on the US Federal Reserve and other central bank meetings this week. The Fed has held interest rates steady so far this year after executing three rate cuts in 2024, but the market expects easing to resume in June.
"You have got the FOMC in the US amid quite a chaotic tariff policy backdrop that could send gold potentially even higher if they have a somewhat dovish stance on rates," said Nitesh Shah, commodities strategist at WisdomTree.
ANZ raised its three-month gold price forecast to $3,100 and its six-month forecast to $3,200, while UBS set a price target of $3,200 for this year.
Silver gained 0.6% to $34.03 an ounce, platinum added 0.6% to $1,005.70, and palladium climbed 1.4% to $977.96.
