Gold price exceeds $3,400 to reach new record high amid tariff uncertainty

After hitting an all-time high, the price of gold currently stands at around $3,404.40 as of 1200GMT.

The ounce of gold rose more than 2.3% on Monday to set a new record after investors' worries increased over further escalation of the trade conflict between the world's two biggest economies.

The central banks' inclination to cut interest rates also fueled the climb in gold, as the European Central Bank cut the rates by 25 basis points last week.

The surge in gold price intensified after US President Donald Trump announced his "reciprocal" tariffs on more than 180 countries on April 2.

China was the first country to react to the US tariff increases and responded at the same rate. As a result of the tariff showdown between the two countries, the US raised its tariffs on China to 145% and China raised its tariffs on the US to 125%.

While the Washington administration postponed the sweeping tariffs imposed on other countries for 90 days, tariffs against China came into force.

The US government also banned Nvidia's H20 chips' exports to China and the White House announced April 15 that China now faces up to 245% tariffs due to its retaliatory actions.

Meanwhile, China said Monday that it firmly opposes any deal between the US and its trading partners at the expense of Chinese interests amid a barrage of tariffs.

If such a situation arises, China will not accept it and will resolutely take corresponding countermeasures, a spokesperson for the Commerce Ministry said in a statement.

The remarks came in response to reports that the US is preparing to pressure other countries to limit trade ties with China in exchange for tariff exemptions, Xinhua News reported.