By Brijesh Patel

(Reuters) - Gold prices extended their stellar run on Monday, topping $3,100 per ounce to hit another record high, as uncertainty around tariffs that would stoke inflation and hinder economic growth lifted safe-haven demand and kept bullion on course for its strongest quarter since 1986.

Spot gold rose 1% to $3,114.77 per ounce by 11:56 a.m. ET (1556 GMT), having hit a record of $3,128.06 earlier. U.S. gold futures were up 1% at $3,147.60.

"The ongoing uncertainty regarding tariffs has affected equity markets and brought another round of safe-haven buying into the gold market," said David Meger, director of metals trading at High Ridge Futures.

"There are certain technical areas of resistance along the way that could cause a little profit-taking or pullback. But the ongoing bullish trend remains in place. The fundamental underpinnings remain in place."

U.S. President Donald Trump is expected to announce reciprocal tariffs on April 2, while automobile tariffs will take effect on April 3.

Trump said on Sunday he 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.

Bullion has gained around 18% so far this year, after rising more than 27% in 2024, supported by a favourable monetary policy backdrop, robust central bank buying and demand for exchange-traded funds, among other factors.

On the technical front, gold's Relative Strength Index stands above 77, indicating the market is overbought, but analysts said the momentum has defied any standard logic of where prices are positioned.

Wall Street big banks have raised their outlook on gold prices citing trade-war tensions and strong central bank demand, with Goldman Sachs expecting gold to surpass $4,500 within the next 12 months under extreme market conditions.

"There are signs of strong Chinese buying activity that are flowing through ... We expect the continued uncertainty with respect to Trump's trade policy to fuel macro funds to purchase more gold," said Daniel Ghali, commodity strategist at TD Securities.

Spot silver slipped 0.9% to $33.81 an ounce, platinum rose 0.5% to $988.05 and palladium gained 0.8% to $979.70. All three metals were headed for monthly gains.

"Silver hasn't been able to benefit from the rise in gold, it really reflects idiosyncratic strength in the gold price as opposed to weakness in the silver price," Ghali said.

(Reporting by Brijesh Patel in Bengaluru; editing by David Evans)