Gold endured a volatile few hours’ trading — rallying to a record, then paring gains — after President Donald Trump imposed tariffs on US steel and aluminum imports, adding to uncertainty in global markets.

Bullion set a fresh peak above $2,942 an ounce, before retracing some of that advance. Trump said on Monday that the latest round of levies, which go into effect in March, would bolster domestic production and bring more jobs to the US. He also warned the tariffs “may go higher.”

The precious metal has surged about 11% this year, setting successive records, as Trump’s disruptive moves on trade and geopolitics reinforce its role as a store of value in uncertain times. Traders are also trying to get a read on the potential implications for the US economy and monetary policy should the White House’s policies reignite inflation and subdue growth.

anks have forecast that a test of $3,000 an ounce is in the offing. Among them, Citigroup Inc. said last week it expected gold to hit that level within three months, with geopolitical tensions and trade wars boosting demand. At J. P. Morgan Private Bank, the year-end target is $3,150 an ounce, according to Global Market Strategist Yuxuan Tang.

Source: FINANCE.YAHOO