The price increase is largely attributed to mounting concerns over the US administration’s impending tariffs, which are expected to trigger inflationary pressures and disrupt international trade.

"Markets remain on edge ahead of tomorrow's tariff announcements. Trump's auto tariffs, which could significantly affect the local export market, are also hanging over investors' heads," said Andre Cilliers, currency risk strategist at TreasuryONE.

"Gold remains the safe-haven asset of choice while US bond yields also continue to rally on good demand."

The rally in gold follows recent remarks by US President Donald Trump, who outlined a new set of tariffs aimed at counteracting perceived trade imbalances. Experts suggest that the tariffs could result in higher costs for consumer goods and raw materials, creating inflationary risks that would erode the purchasing power of the US dollar.

As a result, many investors are diversifying their portfolios into precious metals, particularly gold, which has long been considered a hedge against inflation and currency devaluation.

The surge in gold prices reflects broader concerns about global economic stability. Trade tensions, particularly between the US and China, are already affecting supply chains and business sentiment, and the threat of additional tariffs could exacerbate these challenges.

Cilliers confirmed the dollar is trading unchanged this morning. "Traders are remaining very cautious until there is certainty about exactly what Trump's tariffs are going to look like. Equity markets are mixed but with fairly small moves.

"On the economic front, we have both S&P Global and ISM manufacturing PMI numbers along with the JOLTs job openings data due out today."

Meanwhile, the rand, which was trading at R18.28 earlier this morning, weakened up to 18.37 levels but has since settled back to 18.33. This as the DA is due to announce its decision on whether to approve the budget this morning.