Gold hits another record as tensions flare over Gaza, Trump tariffs

Gold hit a fresh record high above $3,000 an ounce on Tuesday as investors turned to the safe-haven metal on renewed conflict in the Middle East and concerns over US President Donald Trump's tariff plans.

Spot gold hit a peak of $3,028.24 in early trade and by 1105 was at $3,023.09 an ounce, up 0.7%. Prices climbed above $3,000 for the first time on March 14. US gold futures gained 0.8% to $3,031.30.

"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 15% year-to-date and has struck record highs 14 times this year.

Israeli airstrikes pounded Gaza, killing more than 400 people, Palestinian health authorities said on Tuesday, and threatening the complete collapse of a two-month ceasefire as Israel vowed to use more force to free hostages held by Hamas.

Elsewhere, Donald Trump has pursued 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.

"In the short term, gold is facing some resistance at $3,050, which could lead to a bit of profit-taking and consolidation. But if it breaks through, we could see prices heading toward $3,150 to $3,200 by the end of the month," said GoldCore CEO, David Russell.

Silver gained 0.5% to $34.02 an ounce, palladium climbed 0.8% to $972.24, while platinum fell 0.6% to $994.15.