Gold prices surged on Tuesday as uncertainty over US President Donald Trump’s tariff plans continued to drive demand for safe-haven assets. Spot gold rose 0.6% to $2,913.79 an ounce, while US gold futures gained 0.9% to $2,925.50.
Analysts say the trend remains bullish for gold due to central bank buying and potential shortages in Europe. Capital.com’s Kyle Rodda stated that significant central bank buying is underway and there are concerns about a rush of gold into the US market to avoid tariffs. Goldman Sachs also raised its gold price forecast to $3,100 per ounce for end-2025.
However, if policy uncertainty persists, higher speculative positioning could push gold prices as high as $3,300 per ounce by year-end. The bank noted that structurally higher central bank demand is supporting the forecast.
The Federal Reserve’s January meeting minutes are due on Wednesday and will provide clues on how policymakers view the growing risk of a broader trade war on the economy. Fed Governor Michelle Bowman emphasized the need for increased conviction that inflation will ease further this year before lowering interest rates again, particularly given uncertainty around new policies.
Silver fell 0.9% to $32.50 an ounce, while platinum gained 0.9% and palladium climbed 1.6%.
Source: https://www.reuters.com/markets/commodities/gold-gains-uncertainty-about-trumps-tariff-plans-boost-safe-haven-demand-2025-02-18