Gold prices surged to an unprecedented level on Tuesday, fueled by safe-haven demand amid anxieties surrounding U.S. President Donald Trump’s tariff plans, with additional support stemming from inflows into the world’s leading gold-backed exchange-traded fund. Spot gold increased by 0.4 percent to $2,947.48 per ounce as of 01:55 p.m. ET (18:54 GMT), hitting a peak of $2,956.15 earlier in the session—marking its eleventh record high in 2025. U.S. gold futures settled 0.3 percent higher at $2,963.20.
In the UAE, gold rates saw a decline, with 24-carat gold falling by AED0.25 to AED354.00. Similarly, 22-carat gold dropped AED0.50 to AED329.25. Additionally, 21-carat gold decreased by AED0.25, bringing it to AED315.75, while 18-carat gold remained steady at AED271.
Spot gold experienced a slight increase of 0.1 percent, reaching $2,939.15 an ounce as of 04:44 GMT, after achieving an all-time high of $2,954.69 just last Thursday. Meanwhile, U.S. gold futures remained relatively flat at $2,953.
The U.S. dollar index reached its lowest level since December 10 earlier in the session, making bullion more accessible for buyers using other currencies. U.S. President Donald Trump warned of imminent new tariffs last week, which are broadly perceived as inflationary and capable of triggering trade wars, thereby boosting demand for safe-haven assets like gold.
SPDR Gold Trust reports record holdings
The SPDR Gold Trust, the largest gold-backed ETF globally, reported that its holdings increased to 904.38 metric tons on Friday, the highest level since August 2023. Prices remaining above $2,950 per ounce have shifted investor focus towards the $3,000 mark, with the metal appreciating over 12 percent in 2025.
Focus on U.S. economic indicators
Investors are closely monitoring Friday’s U.S. Personal Consumption Expenditures report, which is the Federal Reserve’s preferred inflation gauge. According to a majority of economists in a Reuters poll, the Fed is likely to hold off on cutting rates until next quarter, despite earlier expectations for a March reduction. Additionally, speeches from at least nine U.S. central bank officials this week are anticipated to reinforce a cautious stance on further rate cuts.
Other precious metals experience fluctuations
Spot silver decreased by 0.7 percent to $32.32 an ounce, platinum dropped 0.7 percent to $962.70, and palladium fell 2.6 percent to $944.19.
Gold prices have edged upward, remaining near recent record highs on Monday, thanks to the weakened U.S. dollar. Attention is now focusing on a crucial U.S. inflation report scheduled for release later this week.
In the UAE, gold rates saw an increase, with 24-carat gold rising by AED1.25 to AED354.25. Likewise, 22-carat gold gained AED1.50, reaching AED329.75. Additionally, 21-carat gold climbed by AED1.25 to AED316, while 18-carat gold edged up by AED1.25 to AED271. Spot gold experienced a slight increase of 0.1 percent, reaching $2,939.15 an ounce as of 04:44 GMT, after achieving an all-time high of $2,954.69 just last Thursday. Meanwhile, U.S. gold futures remained relatively flat at $2,953.
Read more: UAE gold prices rise AED1.25 as global rates near record high on weaker U.S. dollar
Anticipation for PCE report
In the previous week, U.S. President Donald Trump threatened new tariffs within the next month or sooner, adding lumber and forest products to previously announced duties on imported cars, semiconductors, and pharmaceuticals.
Markets are now pivoting their attention toward the Personal Consumption Expenditures (PCE) report, the Federal Reserve’s preferred inflation measure, set to be released on Friday. This report could provide valuable insight into the central bank’s interest rate trajectory. Should inflationary pressures compel the Fed to sustain higher rates, the allure of gold as a non-yielding asset may diminish.
“We maintain our optimistic price outlook and note that silver has kept pace with the recent surge in gold prices, amidst ongoing concerns regarding the impact of tariffs on metals traded at the COMEX Market in New York,” remarked Olly Hansen, head of Commodity Strategy at Saxo Bank.
Geopolitical developments influence market dynamics
On the geopolitical front, Trump reversed his position on Friday, acknowledging Russia’s invasion of Ukraine and indicating that Kyiv would soon finalize a minerals agreement with the U.S. as part of efforts to resolve the conflict. Spot silver gained 0.4 percent, reaching $32.67 an ounce, while platinum rose by 0.5 percent to $974.10. In contrast, palladium experienced a slight decline of 0.2 percent, settling at $967.56.
Last week, we observed a narrowing gap between New York’s prices and those of London’s spot market. While gold traders can rely on the Bank of England for gold rentals as a last resort, silver lacks this option, making it more vulnerable to market fluctuations. This situation highlights the persistent and supportive price gap in New York, as emphasized by Hansen.
