Gold hit a record high and was set to post its biggest quarterly gain in over 38 years on Monday, as concerns over U.S. President Donald Trump's tariff plans widening the global trade war and triggering an economic slowdown boosted bullion's appeal.

Spot gold jumped 1.1% to $3,116.82 an ounce, as of 0638 GMT, after hitting an all-time high of $3,128.06 earlier. U.S. gold futures was up 1.1% to $3,148.00.

Gold and silver stocks gained in premarket trading Monday. Kinross and Gold Fields rose more than 2%; Anglogold Ashanti, Coeur Mining, Hecla Mining, Agnico Eagle Mines, and Harmony Gold Mining rose nearly 2%.

While Endeavour Silver rose 3%; Pan American Silver and First Majestic Silver rose 2%.

Gold, traditionally seen as a hedge against political and economic uncertainties, has risen over 18% so far this quarter, its biggest quarterly gain since September 1986.

Interest rate cut bets, central bank buying and exchange-traded fund (ETF) demand are the other factors that have supported the rally. The rapid price rise prompted multiple banks to increase their 2025 price forecasts.

The dollar index eased 0.2%, making greenback-priced gold less expensive for buyers holding other currencies.

"Markets' anxiety levels have been ramping up ahead of the reciprocal U.S. tariff announcements, which is keeping gold in high demand as a defensive play," KCM Trade chief market analyst Tim Waterer said.

"If the tariff announcements this week are not as severe as feared, then the gold price could start to backtrack as profit-taking from the highs may be triggered."

Trump is expected to announce reciprocal tariffs on April 2, while automobile tariffs will take effect on April 3. On Sunday, Trump said he was "pissed off" at Russian President Vladimir Putin and would impose secondary tariffs of 25%-50% on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.

Meanwhile, San Francisco Federal Reserve Bank President Mary Daly said inflation data released on Friday confirms her decreased confidence in her baseline expectation that two rate cuts this year are a "reasonable" projection.

Spot silver rose 0.6% to $34.32 an ounce, platinum was up 1.1% to $994.60 and palladium gained 0.9% to $980.11. All three metals headed for monthly gains.