Gold prices rose to a record high on Monday, but eased slightly on Tuesday as investors maintained their safe-haven demand. Spot gold fell 0.4% to $2,940.03 an ounce, its eleventh record high this year.
US President Donald Trump said tariffs on Canadian and Mexican imports are “on time and on schedule,” despite efforts by the countries to beef up border security and halt the flow of fentanyl into the US. The move has sparked fears of a trade war, driving gold prices higher.
Analysts predict that if both metals (gold and silver) are not exempted from tariffs, it would widen the spread between US and London prices, making non-yielding gold less appealing. Investors now await Friday’s release of the US Personal Consumption Expenditures report, which will provide insights into the central bank’s rate-easing path and monetary policy.
The outlook for gold remains uncertain, with concerns over inflation and the labor market driving investors’ expectations of a strong response from the Federal Reserve. Spot silver, platinum, and palladium also declined on Tuesday, falling 0.6%, 0.2%, and 0.3% respectively.
Source: https://www.reuters.com/markets/commodities/gold-hovers-near-record-high-trump-tariff-worries-2025-02-25