Gold prices hit a new record on Monday, supported by safe-haven flows following US President Donald Trump's move to impose tariffs, Reuters reported.
Spot gold rose 0.8% to $2,818.99 an ounce by 1:45 p.m. ET (18:45 GMT), after hitting a record high of $2,830.49 during the session.
US gold futures closed up 0.8% at $2,857.1.
"Despite the usual impact of a strong US dollar on the gold market, the precious metal's price still increased due to safe-haven demand due to the uncertainty caused by Donald Trump's tariffs," said David Meger, director of metals trading at High Ridge Futures.
Canada and Mexico have announced retaliatory measures, while China has said it will file a complaint with the World Trade Organization (WTO) and take unspecified countermeasures.
However, Mr. Trump announced a one-month suspension of tariffs on Mexico.
Bart Melek, head of commodity strategy at TD Securities, said: "The market still doesn't fully believe in the scale of the trade war."
Gold is often considered a safe haven asset during times of economic or geopolitical uncertainty.
J.P. Morgan said that while pressure from the stock market may weigh on gold in the short term, tariffs could become a supporting factor for gold prices in the medium term.
Investors are awaiting important US economic data this week, including job openings, the ADP jobs report and the official jobs report to assess the health of the US economy.
Meanwhile, bullion banks are shipping gold from Asian trading hubs such as Dubai and Hong Kong (China) to the US to benefit from the unusually high spread between US gold futures and spot prices.
Spot silver rose 0.8% to $31.56 an ounce, while platinum fell 1.5% to $963.40 and palladium rose 0.5% to $1,012.85.
Important economic data this week
Tuesday: US JOLTS job vacancies.
Wednesday: ADP jobs report, US ISM services PMI.
Thursday: Bank of England monetary policy decision, US weekly jobless claims.
Friday: US nonfarm payrolls report, University of Michigan preliminary index of consumer sentiment.
