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Trump unveiled a 25% auto tariffs on Wednesday

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Gold hit its highest since March 21

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U.S. PCE data due on Friday

(Adds comment and updates with EMEA morning hours)

By Rahul Paswan

March 27 (Reuters) - Gold prices hit their highest in

nearly a week on Thursday after U.S. President Donald Trump

announced new tariffs on auto imports starting next week,

escalating global trade tensions that have been driving

safe-haven demand for gold.

Spot gold was up 0.6% at $3,035.98 an ounce as of

0940 GMT, having hit its highest since March 21 earlier in the

session. U.S. gold futures gained 0.8% to $3,045.

Gold, traditionally seen as a hedge against uncertainty and

inflation, has risen more than 15% this year and hit an all-time

peak of $3,057.21 on March 20.

"Policymaking coming from the U.S. is driving huge amounts

of uncertainty and gold, being the defensive, anti-fragile

asset, is largely going up because of those uncertainties,"

Nitesh Shah, commodities strategist at WisdomTree, said.

Trump on Wednesday unveiled a 25% tariff on imported cars

and light trucks, set to come into effect the day after he plans

to announce reciprocal tariffs aimed at the countries

responsible for the bulk of the U.S. trade deficit.

Traders are now looking to Friday's U.S. personal

consumption expenditures data, the Federal Reserve's preferred

inflation measure, to shed more light on the U.S. central bank's

rate cut path.

The Fed held its benchmark interest rate steady last week

but indicated it could cut rates later this year. Non-yielding

bullion tends to thrive in a low interest-rate environment.

"We maintain our bullish stance on gold, though a

consolidation is possible after the recent swift rally towards

$3,040/oz," ANZ analysts said in a note.

Goldman Sachs ( GS ) on Wednesday raised its end-2025 gold price

forecast to $3,300 per ounce from $3,100, citing

stronger-than-expected ETF inflows and sustained central bank

demand.

Spot silver steadied at $33.68 an ounce, platinum

fell 0.2% to $973.20 and palladium shed 0.1% to

$967.08.