In response to U.S. President Donald Trump's announcement of escalating import tariffs, jittery investors turned to safe-haven assets, causing gold prices to soar to a record high. The increase in tariffs, which caught many countries off guard, intensified the ongoing global trade war.

Gold prices rose by 0.5% to $3,148.05 per ounce and reached a peak of $3,167.57 earlier in the day. U.S. gold futures also saw a 0.2% gain, reaching $3,172.60.

Trump's unveiling of a 10% baseline tariff on all U.S. imports, along with higher duties on various countries, including major trading partners, further escalated the trade tensions. Analysts predict that this aggressive tariff strategy could hamper U.S. economic growth and fuel inflation.

The implementation of a 25% global tariff on cars and trucks on April 3, as well as automotive parts import duties on May 3, was confirmed by the Trump administration.

Gold, a traditional safe-haven asset, has seen a 19% increase this year due to uncertainties surrounding tariffs, potential interest rate cuts, geopolitical tensions, and central bank acquisitions.

Market analysts suggest that the tariffs could lead to a slowdown in the U.S. economy, potentially prompting future rate cuts. Additionally, traders are anticipating a shift towards gold as central banks may choose it over U.S. dollar assets.

Although U.S. private payrolls exceeded expectations in March, concerns about a slowing labor market persist amid growing economic uncertainties. The upcoming U.S. non-farm payrolls report on Friday will provide further insights into the Federal Reserve's future policies.

While spot silver dropped 1.5% to $33.52 an ounce, platinum fell by 0.7% to $977.17, and palladium saw a 0.5% decline to $965.14.