Gold prices hit a record peak on Tuesday, as concerns that U.S. President Donald Trump's reciprocal tariffs might fuel inflationary pressures and impede economic growth drove safe-haven demand.

Spot gold was up 0.6% at $3,142.83 an ounce, as of 0310 GMT, after hitting an all-time high of $3,145.38 earlier in the session.

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

In the previous session, bullion recorded its strongest quarter since 1986, marking one of the most significant upswings in the precious metal's history.

"The anticipation of the April 2 U.S. reciprocal tariffs has led market participants to lean towards a defensive stance, with some de-risking and turning to safe-haven gold as a hedge against impending portfolio volatility," IG market strategist Yeap Jun Rong said.

"While technical indicators suggest overextension in the near term, uncertainty surrounding the tariffs is likely to sustain gold's traction for now, with buyers seemingly eyeing for a retest of the $3,200 level next."

Trump, who sees tariffs as a way of protecting the domestic economy 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 monitoring the automobile tariffs, which 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 the current level of interest rates in place "for some time" will allow officials to study incoming data and decide what they need to do next.

U.S. data this week includes the job openings due later in the day, the ADP employment report on Wednesday and the non-farm payrolls report on Friday that could provide insights into the Fed's rate-cut trajectory.

Spot silver firmed 0.2% to $34.13 an ounce, platinum was flat at $992.70, and palladium gained 0.8% to $990.34.