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.