Gold prices rose on Tuesday as investors sought safe-haven assets amid uncertainty over US President Donald Trump’s tariff plans. Spot gold increased by 0.2% to $2,903.56 per ounce, while US gold futures gained 0.6% to $2,916.80.
Analysts attribute the surge in demand for gold to concerns about potential global trade tensions and a rush of buyers seeking to avoid tariffs. Capital.com’s Kyle Rodda noted that central bank buying has been significant, contributing to the market’s bullish trend. The analyst believes that inflation remains under control, allowing for further interest rate cuts.
The US Federal Reserve Governor Michelle Bowman also expressed her desire for confidence in easing inflation this year before lowering interest rates again. Her comments came as two Fed officials are set to discuss monetary policy later today.
Investors view gold as a hedge against rising inflation and economic uncertainty. Goldman Sachs has raised its gold price forecast to $3,100 per ounce by 2025 due to structurally higher central bank demand.
Other precious metals, such as silver, platinum, and palladium, also experienced changes in their prices. However, gold remains the focus of investor attention amid the ongoing trade war concerns.
Source: https://www.cnbc.com/2025/02/18/gold-gains-as-uncertainty-about-trumps-tariff-plans-boost-safe-haven-demand.html