Gold prices extended their gains on Tuesday, as uncertainty over U.S. President Donald Trump's tariff plans continued to dominate market sentiment, driving safe-haven demand amid fears of a potential global trade war.

Spot gold was up 0.6% at $2,913.79 an ounce, as of 0714 GMT. U.S. gold futures gained 0.9% to $2,925.50.

"We've seemingly got pretty significant central bank buying and that we've also got these potential shortages in Europe on the basis that there seems to be a rush to get gold in the U.S., to avoid possible tariffs," Capital.com's financial market analyst Kyle Rodda said.

"I think the trend remains bullish for gold - the fundamentals are good."

Since his inauguration last month, Trump has imposed a 10% tariff on Chinese imports, announced and delayed 25% tariffs on goods from Mexico and non-energy imports from Canada, set a date for 25% tariffs on imported steel and aluminium, and is planning reciprocal tariffs on all countries taxing U.S. imports.

Goldman Sachs raised its gold price forecast to $3,100 per ounce for end-2025 from $2,890 per ounce on structurally higher central bank demand.

"However, if policy uncertainty - including tariff fears -stays high, higher speculative positioning for longer could push gold prices as high as $3,300/toz by year-end," the bank noted.

Bullion, which hit a record peak of $2,942.70 on February 11, is viewed as a traditional hedge against rising inflation and economical uncertainties.

As traders continue to monitor tariffs, their focus is now shifting to the Federal Reserve's January meeting minutes, due on Wednesday, for clues on how policymakers view the growing risk of a broader trade war on economy.

Spot silver fell 0.9% to $32.50 an ounce. Platinum gained 0.9% to $985.20, and palladium climbed 1.6% to $978.00.

Source: Reuters