By Anjana Anil

(Reuters) - Gold hit a record high on Friday, as uncertainty over U.S. tariffs and fears of trade tensions propelled prices, along with increased expectations of monetary policy easing by the Federal Reserve.

Spot gold eased 0.1% to $2,983.78 an ounce as of 0132 GMT, after hitting a record high of $2,990.09 earlier in the session, within touching distance of the key $3,000 milestone.

Bullion is also poised to log a second straight weekly rise, with a 2.5% gain so far.

U.S. gold futures rose 0.2% to $2,996.70.

"The risk-off market stance reflects investors’ expectations that trade tensions are likely to get worse before it cools, and are turning to safe-haven gold once again as a hedge against portfolio volatility," said IG market strategist Yeap Jun Rong.

Latest in U.S. President Donald Trump’s multi-front trade war, the European Union responded to blanket U.S. tariffs on steel and aluminium by imposing a 50% tax on American whiskey exports, prompting the president to threaten on Truth Social to charge a 200% tariff on imports of European wines and spirits.

"The psychological $3,000 level is now coming into view for gold prices, and as we approach the second quarter, where reciprocal tariffs could trigger another wave of market turbulence, gold remains a compelling safe-haven asset in an environment where alternatives are scarce," Rong added.

Trump’s tariffs are widely expected to stoke inflation and economic uncertainty, and have prompted gold to reach multiple record highs in 2025.

Gold is seen as a hedge against political risks and inflation.

Markets now await the Fed’s monetary policy meeting next Wednesday. The central bank is expected to keep its benchmark overnight interest rate in the 4.25%-4.50% range.

Non-yielding bullion thrives in a low interest rate environment.

Meanwhile, Russian President Vladimir Putin said on Thursday Russia supported a U.S. proposal for a ceasefire in Ukraine in principle, but sought a number of clarifications and conditions that appeared to rule out a quick end to the fighting.

Spot silver eased 0.2% to $33.72 an ounce, platinum firmed 0.1% to $995.30, and palladium gained 0.7% to $964.32.