Gold prices jumped more than 1% Monday to hit a record high, as safe-haven demand surged on fears of a global trade war after U.S. President Donald Trump announced new tariff plans.

Spot gold was up 1.4% at $2,900.39 per ounce, as of 0924 GMT, after hitting a record high of $2,903.08 earlier in the session — its seventh record this year.

U.S. gold futures rose 1.4% to $2,926.60.

"The precious metal is set to retain its upward bias, as long as President Trump’s policy threats continue to stoke fear and uncertainty through global financial markets," said Exinity Group chief market analyst Han Tan.

Trump announced on Sunday plans to impose an additional 25% tariff on all steel and aluminum imports. He also said he will announce reciprocal tariffs this week, matching rates imposed by other countries and applying them immediately.

Gold is considered a safe investment during economic and geopolitical turmoil, but higher interest rates reduce the non-yielding asset's appeal.

This week, investors will also focus on Consumer Price Index (CPI) and Producer Price Index (PPI) data, due later in the week, which could provide insight into the U.S. interest rate trajectory.

"Should the incoming U.S. CPI produce a hotter-than-expected print, further delaying the next Fed rate cut, that could prompt some immediate profit-taking in spot gold," Tan added.

Federal Reserve Governor Adriana Kugler said on Friday that it is "prudent" to keep rates steady amid steady inflation, a strong labor market, and policy uncertainty.

Elsewhere, the amount of gold stored in the London vaults fell 1.7% month on month to 8,535 metric tons worth $771.6 billion in January due to a rush in shipments to the United States, the London Bullion Market Association said.

Spot silver rose 1.4% to $32.25 per ounce after hitting a 3-month high on Friday.

Platinum added 0.6% to $982.35 and palladium gained 0.8% to $972.00.