Gold prices extended their stellar run on Monday, topping $3,100 per ounce to hit another record high, as uncertainty around tariffs that would stoke inflation and hinder economic growth lifted safe-haven demand and kept bullion on course for its strongest quarter since 1986.
Spot gold rose 1% to $3,116.94 per ounce by 01:44 p.m. ET (1744 GMT), having hit a record of $3,128.06 earlier. U.S. gold futures rose 1.2% to settle at $3,150.30.
"The ongoing uncertainty regarding tariffs has affected equity markets and brought another round of safe-haven buying into the gold market," said David Meger, director of metals trading at High Ridge Futures.
"There are certain technical areas of resistance along the way that could cause a little profit-taking or pullback. But the ongoing bullish trend remains in place. The fundamental underpinnings remain in place."
U.S. President Donald Trump is expected to announce reciprocal tariffs on April 2, while automobile tariffs will take effect on April 3.
Trump said on Sunday he would impose secondary tariffs of 25%-50% on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.
Bullion has gained around 18% so far this year, after rising more than 27% in 2024, supported by a favourable monetary policy backdrop, robust central bank buying and demand for exchange-traded funds, among other factors.
On the technical front, gold's Relative Strength Index stands above 77, indicating the market is overbought, but analysts said the momentum has defied any standard logic of where prices are positioned.
Wall Street big banks have raised their outlook on gold prices, citing trade-war tensions and strong central bank demand, with Goldman Sachs expecting gold to surpass $4,500 within the next 12 months under extreme market conditions.
"There are signs of strong Chinese buying activity that are flowing through ... We expect the continued uncertainty with respect to Trump's trade policy to fuel macro funds to purchase more gold," said Daniel Ghali, commodity strategist at TD Securities.
Spot silver slipped 0.6% to $33.90 an ounce, platinum rose 0.5% to $996.20 and palladium gained 1.2% to $982.94. All three metals were headed for monthly gains.
Source: Reuters
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...