WASHINGTON, D.C.: Gold surged past US$3,100 an ounce on March 31, extending a record-breaking rally fueled by global uncertainty and fears of inflation linked to looming U.S. tariffs.

The precious metal continued to attract investors seeking safety, pushing spot prices up one percent to $3,114.77 by 11:56 a.m. ET. Earlier in the day, gold hit a new high of $3,128.06. U.S. gold futures also gained one percent to $3,147.60.

"The ongoing uncertainty regarding tariffs has affected equity markets and brought another round of safe-haven buying into the gold market," said David Meger, director of metals trading at High Ridge Futures.

"There are certain technical areas of resistance along the way that could cause a little profit-taking or pullback. But the ongoing bullish trend remains in place. The fundamental underpinnings remain in place."

The rally positions gold for its strongest quarterly performance since 1986, with prices up roughly 18 percent in 2025 so far, following a 27 percent gain in 2024. Key drivers include strong central bank purchases, supportive monetary policy, and increased demand for exchange-traded funds.

Markets are bracing for potential trade disruptions as U.S. President Donald Trump is expected to impose reciprocal tariffs on April 2, followed by auto tariffs the next day. On March 30, Trump also threatened to slap 25 percent to 50 percent secondary tariffs on buyers of Russian oil if Moscow obstructs efforts to resolve the war in Ukraine.

Despite gold's Relative Strength Index standing above 77 — suggesting the market is overbought — analysts say momentum remains strong.

Wall Street banks have raised their forecasts, with Goldman Sachs projecting prices could exceed $4,500 over the next year under extreme market stress.

"There are signs of strong Chinese buying activity that are flowing through ... We expect the continued uncertainty with respect to Trump's trade policy to fuel macro funds to purchase more gold," said Daniel Ghali, commodity strategist at TD Securities.

In other precious metals, spot silver slipped 0.9 percent to $33.81 per ounce. Platinum rose 0.5 percent to $988.05, while palladium gained 0.8 percent to $979.70. All were on track for monthly gains.

"Silver hasn't been able to benefit from the rise in gold; it really reflects idiosyncratic strength in the gold price as opposed to weakness in the silver price," Ghali said.