Gold prices rose on Tuesday as investors continued to flock to the safe-haven asset amid uncertainty surrounding US President Donald Trump’s tariff plans, which could escalate an ongoing trade war and slow global economic growth.
Spot gold was up 0.3% at $3,219.99 an ounce at 1135 GMT. Bullion hit a record high of $3,245.42 on Monday.
US gold futures rose 0.3% to $3,235.50.
“The environment remains supportive for higher gold prices, but the journey towards higher prices will not be a straight line, there will likely be some temporary setbacks,” said UBS analyst Giovanni Staunovo.
According to Reuters, federal Register filings on Monday showed that the US administration is advancing investigations into pharmaceutical and semiconductor imports in a bid to impose tariffs.
Trump on Sunday said he would announce the tariff rate on imported semiconductors over the next week.
Bullion, a hedge against global instability, has maintained its upward trajectory from last year, rising over 23% so far in 2025 and clinching multiple record highs.
The US economy is in a “big pause” due to uncertainties surrounding the tariffs and other policies, Atlanta Federal Reserve Bank President, Raphael Bostic said on Monday, suggesting the central bank should retain its current wait-and-see approach until there is more clarity.
Traders are currently expecting 83 basis points of rate cuts from the Fed this year. Non-yielding bullion tends to thrive in a low interest rate environment.
Meanwhile, investments in Chinese physically-backed gold exchange-traded funds so far this month have exceeded those for all of the first quarter and overtaken inflows registered by US-listed funds, World Gold Council data showed.
“Higher inflation, lower economic growth and political uncertainty are likely to keep supporting gold demand from investors and central banks. New gold import quotas in China should also be supportive,” Staunovo said.
Spot silver fell 0.2% to $32.27 an ounce and platinum rose 0.9% to $960.20, while palladium was up 0.6% at $961.68.
