Gold prices eased Tuesday after hitting fresh record highs as investors weighed he persistent concerns over increased trade tariffs under U.S. President Donald Trump fueled safe haven demand. 

The yellow metal vastly outpaced other metals, shrugging off strength in the dollar after Trump signed orders imposing 25% tariffs on all steel and aluminum imports to the U.S.

Trump also raised the prospect of more trade duties this week. 

Increased geopolitical jitters also fueled gold demand, after Trump demanded Hamas return all Israeli hostages by this weekend, warning of dire consequences. 

Spot gold fell 0.1% to $2,904.40 an ounce after hitting a record of $2,942.69, while gold futures slipped 0.1% to $2,933.21 an ounce after notching a record of $2,968.39 earlier in the session,  

Gold eases from record as Powell’s remarks cools rate-cut expectations 

Powell told the Senate Banking committee Tuesday that there wasn’t a need for the Fed to "to be in a hurry" to lower interest rates as monetary policy is already less restrictive and the economy remains strong.

“With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need  to adjust our policy stance,” Powell said.

The move send Treasury yields rising, weighing on a non-yield bearing Gold, though losses were kept in check by ongoing safe-heaven demand amid tariff concerns. 

Trump on Monday signed an executive order imposing 25% tariffs on all steel and aluminum imports, the latest in his line of trade tariffs. The new tariffs will become effective by March 12.

The U.S. President said he could raise tariffs on the commodities further, and also said he will reveal plans for reciprocal tariffs against major U.S. trading partners this week.

This comes just a week after Trump slapped China with 10% tariffs, drawing ire and retaliation from Beijing.

Markets feared that more tariffs from Trump will escalate an already brewing trade war between the world’s biggest economies, sparking disruptions in global trade and denting economic activity. This notion pushed traders squarely into safe havens such as gold.

U.S. Inflation data eyed

The Consumer price index inflation data for January, due on Wednesday, is set to offer more cues on inflation and interest rates.

The data is expected to show cooling headline inflation, but rising core inflation for January. 

Other precious metals traded mixed, as the dollar firmed on Trump’s tariffs. Platinum futures rose 0.4% to $1,036.80 an ounce, while silver futures fell 0.6% to $32.307 an ounce. 

Industrial metals were rattled by Trump’s tariffs, with benchmark copper futures on the London Metal Exchange falling 1.1% to $9,362.00 a ton. March copper futures fell 2.4% to $4.5928 a pound.