Gold hit a record high after President Donald Trump imposed 25% tariffs on all U.S. steel and aluminum imports, adding to uncertainty across global markets that has boosted demand for precious assets.

Bullion hit an all-time peak above $2,921 an ounce — after jumping 1.7% in the previous session. Trump said Monday that the levies, which take effect March 4, will help boost domestic production and bring more jobs to the U.S., and warned that tariffs "may go higher." The precious metal has surged 11% this year, hitting a series of records, as Trump's disruptive moves on trade and geopolitics have reinforced his role as a store of value in uncertain times. Markets are also trying to get a sense of the potential implications for the U.S. economy and monetary policy if White House policies reignite inflation and dampen growth.

Investors will focus on Federal Reserve Chairman Jerome Powell's testimony before Congress on Tuesday and Wednesday for clues on the trajectory of monetary policy. Short-term inflation expectations have risen above longer-term ones to the widest gap since 2023, with the so-called five-year breakeven rate hitting 2.64% on Monday. That may bolster the case for a slower pace of easing, a scenario that, in theory, would be bearish for bullion because it doesn't pay interest.

Elsewhere, China's central bank expanded its gold reserves for a third month in January, signaling a continued commitment to diversifying holdings even with prices at historic highs. Asia's largest economy also announced a pilot program to allow 10 major insurers to invest as much as 1% of their assets in bullion for the first time. That would raise a potential fund of 200 billion yuan ($27.4 billion), Minsheng Securities Co. said in a note.

Spot gold rose 0.4% to $2,919.23 an ounce as of 7:50 a.m. in Singapore. The Bloomberg Dollar Spot Index rose 0.1% after rising 0.2% on Monday. Silver and platinum prices edged up, while palladium fell.

Source: Bloomberg