The price of gold has etched a new record high, topping $2,910 an ounce on Monday afternoon in London.
Since the start of 2025, the spot price for the heavy yellow metal has added $300 per oz.
Analysts say gold's recent strength is on the back of a mix of factors, including geopolitical uncertainties, inflation concerns, central bank easing, and steady demand for the yellow metal from central banks and retail investors.
Some analysts said Donald Trump's latest tariffs announcement could also be providing some extra impetus.
The US President, on board Air Force One last night, said he would put 25% tariffs on steel and aluminium imports today, with Canada, Mexico and Latin America likely to be the most impacted given that's where the US imports most of these goods from.
Announcing this late on Sunday "suggests that he is not too worried about the market reaction", said Kathleen Brooks, head of research at XTB, as typically Trump has announced tariffs earlier in the weekend, as if he was watching the reaction and to give himself time to back track before stocks or risk assets sold off too sharply.
"This may suggest that Trump is determined to impose tariffs on these industrial metals. These tariffs are targeting specific products, rather than individual countries, which makes it hard for any negotiations to take place.
"We think that this move could boost the gold price, as it may lead to a further flurry of demand to bring gold on shore to the US, in case Trump imposes tariffs on precious metals."
Chris Weston at Pepperstone said gold traders are reacting to "fears of impending Trump tariffs on gold imports", which resulted in 3.28 million troy oz of physical gold being delivered to Comex vaults in the US last week.
"The scene in the London markets is clearly precarious, with a significant scarcity of physical gold leading to a spike higher in short-term lending rates and even in the borrowing rates in the GLD ETF.
"We see that stress in the paper market, with electronic claims trading at a decent discount to spot gold or futures pricing, with counterparty risk clearly on the rise."
Investors will now be wondering whether gold has enough legs to reach the psychologically significant $3,000 level, Brooks added.
** Update: Latest high added **