Gold prices hit a record high on Tuesday on fears that U.S. President Donald Trump’s retaliatory tariffs could stoke inflationary pressures and hamper economic growth, making the precious metal a safe haven.

In the previous session, gold prices rose 0.6% to an all-time high of $3,145.38, and were at $3,142.83 an ounce by 0310 GMT.

U.S. gold futures rose 0.7% to $3,171.80.

In the previous session, bullion had its strongest quarter since 1986, marking the most significant rally in the precious metal’s history.

“The prospect of U.S. retaliatory tariffs on April 2 has led market participants to shift to a defensive stance, reduce risk and turn to safe haven gold as a hedge against potential portfolio volatility,” said IG Market Strategist Yip Jun Rong.

“While technical indicators suggest an extension of overbought conditions in the near term, the uncertainty surrounding tariffs is likely to keep gold attractive for now, with buyers looking to retest the $3,200 level next.”

Trump, who sees tariffs as a way to protect domestic economies from unfair global competition, has promised to unveil a massive tariff plan on Wednesday, which he has dubbed “Liberation Day.” The reciprocal tariffs he is set to announce will include all nations.

Markets are also closely watching upcoming auto tariffs that will take effect on April 3.

Bullion, seen as a hedge against geopolitical and economic instability, thrives in a low-interest-rate environment.

New York Federal Reserve President John Williams said keeping interest rates on hold “for a while” would allow policymakers to study the incoming data and decide what to do next.

U.S. data this week includes jobs data due later in the day, Wednesday’s ADP jobs report, and Friday’s nonfarm payrolls report, which could provide insight into the Fed’s rate-cutting trajectory.

Spot silver was up 0.8% at $34.13 an ounce, platinum at $992.70 and palladium at $990.34.