Gold hits record high ahead of Trump’s tariff rollout

The price of gold has reached a new all-time high as nervous investors pile into safe-haven assets ahead of US President Donald Trump’s incoming trade tariffs.

It hit a new record of more than 3,133 US dollars an ounce at one stage, up about 10 dollars, as market volatility sent investors dashing for more reliable investments.

Markets rebounded after heavy falls on Monday as Mr Trump’s so-called Liberation Day sparked the latest sell-off, and the FTSE 100 Index closed down 0.9% to settle at 8,582.81.

But London’s blue chip share index recovered ground lost on Monday, rising 0.9% to 8658.8 in morning trading on Tuesday, as investors hoped that Mr Trump’s tariffs, due to be announced in the US on Wednesday, will not be as punishing as feared.

Markets across Europe were also staging a bounce-back, with the Dax in Germany up 1.6% and France’s Cac 40 1.1% higher.

Kathleen Brooks, research director at XTB, said: “Until we get clarity on the reciprocal tariffs from the US, then it is hard to see the gold price faltering from here.

“Gold has been a consistent trade in the age of Trump and tariffs, and it remains an attractive asset in the current environment.”

Russ Mould, investment director at AJ Bell, said investors appeared to have “moved out of panic mood”.

“Markets often over-react in the face of potential bad news, with investors pressing the sell button first and thinking later,” he said.

Ms Brooks said that markets will remain “jittery”.

She said: “Hopes are that a recovery rally could take hold if Trump’s tariff announcements are seen as the final move from the White House in its trade war, and if the new levies are reasonably easy to comply with.

“The downside risk for stocks could emerge once more if Trump suggests that even more tariffs could be coming down the line or if there is a lack of clarity about reciprocal tariffs in the announcement.

“Markets are hoping for a clean decision, that allows traders to move on from tariffs.”