Trump tariffs propel safe-haven gold to record highs

Feb 11 (Reuters) - Gold prices soared to a record high on Tuesday, as investors flocked to the safe-haven asset after U.S. President Donald Trump's imposed new 25% tariffs on steel and aluminium imports, fuelling concerns over a potential trade war and inflation.

FUNDAMENTALS

Spot gold XAU= was up 0.4% at $2,919.90 per ounce, as of 0038 GMT, after hitting a record high of $2,921.15 earlier in the session.

U.S. gold futures GCcv1 gained 0.3% to $2,944.40.

Trump substantially raised tariffs on steel and aluminum imports on Monday to a flat 25% "without exceptions or exemptions" in a move to aid the struggling industries but which increases the risk of a multi-front trade war.

Bullion has hit its eighth record high this year, driven by Trump's tariff threats, which have fuelled global growth uncertainties, trade war concerns, and inflationary pressure.

The threats have ignited another gold rush, propelling the safe-haven metal to new heights and bringing the glittering $3,000 milestone into view.

Tariffs may exacerbate U.S. inflation, with investors awaiting U.S. Consumer Price Index (CPI) on Wednesday and Producer Price Index (PPI) data on Thursday.

Federal Reserve Chair Jerome Powell is also due to testify before Congress on Tuesday and Wednesday.

On the geopolitical front, Hamas announced on Monday that it would stop releasing Israeli hostages until further notice over what the Palestinian militant group called Israeli violations of a ceasefire agreement in Gaza, raising the risk of reigniting the conflict.

Spot silver XAG= firmed 0.3% to $32.12 per ounce and platinum XPT= was steady at $993.80, while palladium XPD= fell 0.3% to $979.88.

DATA/EVENTS (GMT)

No major data/events expected for Tuesday, Feb 11.