PRECIOUS-Gold hits record peak amid tariff concerns; inflation data in focus

By Rahul Paswan and Sarah Qureshi

March 28 (Reuters) - Gold prices extended gains to scale a record peak on Friday amid escalating trade war fears following U.S. President Trump's latest tariffs, while the spotlight was also on inflation data due later in the day.

Spot gold XAU= climbed 0.6% to $3,075.77 an ounce as of 1108 GMT after hitting an all-time high of $3,086.21 earlier. Prices were headed for a fourth straight week of gains.

U.S. gold futures GCcv1 added 0.1% to $3,081, after touching a record peak at $3,124.4 earlier in the session.

"Gold has always been, and will continue to be, a long-term buy-and-hold asset due to its ability to preserve wealth and act as a hedge against turbulence in other asset classes," said Ole Hansen, head of commodity strategy at Saxo Bank.

"The market remains supported by strong haven demand amid tariff concerns, sustained central bank buying—particularly in Asia and renewed interest in bullion-backed exchange-traded funds (ETFs) from institutional investors."

Trump's reciprocal tariffs, due to take effect on April 2, could stoke inflation, dampen economic growth and escalate trade disputes.

The U.S. Personal Consumption Expenditures data is due at 1230 GMT, investors will scan it for hints on Federal Reserve's policy moves. The U.S. central bank held its benchmark interest rate steady last week but indicated that it could cut rates later this year. FEDWATCH

"I currently see gold testing the $3,200-$3,250 range in the near term, assuming no sudden reversal in Fed policy or easing of geopolitical risks," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.

Bullion tends to do well in a low interest rate environment as it yields no interest.

Elsewhere, Russian President Vladimir Putin suggested Ukraine be placed under a form of temporary administration to allow for new elections and the signature of key accords to reach a settlement in the war.

Spot silver XAG= rose slightly to $34.43 an ounce, platinum XPT= eased 0.2% to $983.50, and palladium XPD= added 0.4% to $979.61. All three metals were set for weekly gains.