Gold prices head towards the strongest quarter increase since 1986

Gold continues to increase strongly, up about 18% since the beginning of this year. Spot gold rose 1.1% to $3,117.43 an ounce at 09:35 GMT, after hitting a previous record of $3,128.06/ounce. US gold futures also increased 1.1%, to 3,149.60 USD/ounce.

Gold has gained more than 27% last year on positive factors such as favorable monetary policy and strong central bank buying, causing investors to rush into this safe-haven asset.

On the technical chart, the relative strength index (RSI) of gold is above 77, showing that the market is overbought, but analysts said that gold's increase still surpasses all standard price theories.

"The driver for gold's price increase is due to concerns about tariffs. Concerns that these tariffs will limit growth and could lead to poorer economic results are supporting gold prices," said Nitesh Shah, commodity strategist at WisdomTree.

US President Donald Trump is expected to announce a retaliatory tariff on April 2, while the tariff on cars will take effect from April 3.

A series of other factors, including forecasts of interest rate cuts, central bank purchases and demand for exchange-traded funds (ETFs) have helped gold's non-yielding position reach a record high.

"Gold prices could trade around $3,500 around this time next year, reflecting strong emotions about the precious metal, largely due to the remaining geopolitical risks," Nitesh Shah said.

On Sunday, Donald Trump said he could impose a secondary tariff of 25%-50% on Russian oil buyers if he felt Moscow hindered efforts to end the war in Ukraine.

Gold demand in India has been weak last week as gold prices hit a record high and jewelry traders are busy closing their books for the financial year, while most gold buying and selling centers in other Asian countries have also recorded a decline in shopping interest.

Spot silver prices rose 0.2% to 34.17 USD/ounce, platinum increased 1% to 993.15 USD and palladium increased 0.5% to 976.75 USD. All three metals are likely to increase for the month.