Gold prices extended their gains on Wednesday, following a record high in the previous session, as investors sought the comfort of the safe-haven metal in anticipation of the potential impact of US reciprocal tariffs.
Spot gold was up 0.7% at $3,131.25 an ounce, as of 0240 GMT. Bullion touched an all-time high of $3,148.88 on Tuesday.
US gold futures rose 0.4% to $3,159.90.
"The main reason for these successive record highs has been safe-haven buying, and the geo-political uncertainty underpinning this shows no sign of letting up," said Philip Newman, managing director of Metals Focus.
A US economic slowdown, potential rise in inflation, and interest rate cuts could set the stage for gold to reach $3,300 in the coming months, Newman said.
Suspense surrounds the market ahead of the US tariffs set to be imposed later in the day, which President Donald Trump has called "Liberation Day".
Trump's tariff policies could flare up inflation, slow economic growth and escalate trade disputes. Gold, a hedge against global instabilities and inflation, thrives in a low-interest-rate environment.
The White House confirmed new tariffs will be imposed, though it provided no details on the size or scope.
Bullion's rally has also been fuelled by strong central bank demand, expectations of interest rate easing by the Federal Reserve, geopolitical instability in the Middle East and Europe, and increased flows into gold-backed exchange traded funds.
"The market could test $3,400/oz over the next 9 months in a bull case scenario," said Aakash Doshi, global head of gold strategy at State Street Global Advisors.
Fed officials are concerned that employment could slip, but the threat of tariff-driven inflation limits their ability to do anything about it.
Markets await ADP employment report due later in the day, and non-farm payrolls due on Friday.
Spot silver added 0.2% to $33.82 an ounce, platinum gained 0.8% to $987.66, and palladium advanced 0.7% to $990.45.
