NEW YORK: Gold prices rose on Tuesday as concerns over economic growth due to uncertainty surrounding US President Donald Trump’s tariff plans prompted safe-haven flows into bullion.
Spot gold gained 0.9% to $2,923.89 an ounce as of 09:32 a.m. ET (1432 GMT) after hitting a record high of $2,942.70 last week.
US gold futures added 1.4% to $2,940.30.
“We are seeing increased safe-haven demand due to the disrupted nature of the Trump administration and we have also got a bullish chart posture,” said Jim Wyckoff, a senior market analyst at Kitco Metals.
Since taking office last month, Trump has swiftly redrawn the global trade battlefield with a series of tariffs, while plans are already in motion for sweeping reciprocal tariffs, aimed squarely at any nation that taxes US products.
“Central bank buying should also continue to provide support,” Commerzbank analysts said in a note.
The market’s focus has now shifted to the US Federal Reserve’s January meeting minutes due on Wednesday for clues into the central bank’s interest rate trajectory.
“If the economy starts to sputter because of the trade tariffs and such, then we could see some lower interest rates,” Wyckoff said.
Safe-haven bullion benefits from geopolitical and economic uncertainties and tends to thrive in a low interest rate environment as it yields no interest.
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