Gold prices firmed on Monday, hovering near a record high from the previous session, as investors sought refuge in the safe-haven asset after U.S. President Donald Trump's decision to impose fresh tariffs sparked concerns of a global trade war.

Spot gold rose 0.3% to $2,868.66 per ounce as of 0005 GMT, after hitting an all-time high of $2,886.62 on Friday. U.S. gold futures gained 0.2% to $2,894.00.

Trump announced over the weekend that he will impose new 25% tariffs on all steel and aluminum imports into the U.S. on Monday, adding to existing duties in a major escalation of his trade policy overhaul. He also stated plans to introduce reciprocal tariffs on multiple countries by early next week.

"Global trade tension is still pretty much at play and could drive gold prices to the $2,900-$2,910 level in the near term," said Kelvin Wong, senior market analyst for Asia Pacific at OANDA. "I don't see any high probability of a correction yet at this juncture, unless we start to see a very strong U.S. dollar push up."

Gold is traditionally seen as a safe investment during economic and financial turmoil, though higher interest rates can reduce its appeal as a non-yielding asset.

Federal Reserve officials said on Friday that the U.S. job market remains strong but noted uncertainty over how Trump's policies might impact economic growth and inflation, reinforcing their cautious stance on interest rate cuts.

On the geopolitical front, Trump expressed optimism about progress in U.S. efforts to end the war between Russia and Ukraine but declined to share details of any discussions with Russian President Vladimir Putin.

In other precious metals, spot silver remained steady at $31.82 per ounce, platinum edged down 0.3% to $973.60, and palladium rose 0.4% to $968.29.