Gold prices reached an all-time high, exceeding $2,895 per ounce, following announcements from President Donald Trump regarding new tariffs on steel and aluminum imports.

The tariffs, which specify a 25% levy on imports from all countries, have contributed to rising uncertainty in the global financial markets.

This surge in gold prices reflects increased demand for secure investments amid concerns over potential trade conflicts and inflation.

In a recent note, Westpac Banking Corp. analyst Richard Franulovich stated, 'Gold remains in a sweet spot, with little standing in its way,' highlighting the unpredictable nature of current political dynamics and tariff threats.

The market's response suggests heightened safe-haven appeal for gold as investors assess the implications of the new tariffs.

Investors are also awaiting Federal Reserve Chair Jerome Powell's semi-annual testimony before Congress, scheduled for Tuesday and Wednesday.

Analysts suggest that Powell is likely to underscore the robustness of the US economy, which may influence future monetary policy decisions.

Typically, an environment of stable or increasing interest rates could exert downward pressure on gold prices; however, the current geopolitical climate is sustaining high levels of demand for the precious metal.

In January, the People's Bank of China increased its gold reserves for the third consecutive month, reaffirming its strategy to diversify its holdings amidst fluctuating prices.

Additionally, China introduced a pilot scheme that allows major insurance companies to invest a portion of their assets in gold, marking a significant move for the country's financial sector.

As of 7:41 AM in London, spot gold was trading at $2,893.55, reflecting a 1.1% increase.

The Bloomberg Dollar Spot Index rose by 0.2% during the same period.

Other precious metals also saw varied movements, with silver and platinum prices climbing, while palladium experienced a slight decline.