Gold prices rose more than 1% on Tuesday as safe-haven demand boosted gold amid uncertainty over controversial trade policies proposed by US President Donald Trump. Yellow Metal bounced off a daily low of $2,892 to trade at $2,933.
- Gold rises as Trump tariff uncertainty fuels safe-haven demand
- Protected: MCX Gold Update [18 Feb 2025]
- Trump, Putin teams complete Ukraine talks, summit date yet to be set
- Neal Bhai suggests buying silver between Rs 94,900-94,500
- Gold extends gains as Trump tariffs fuel safe haven flows
Financial markets have been in turmoil after Trump imposed tariffs on steel and aluminum imports into the US last week and plans for reciprocal tariffs. Bullion prices are therefore set to challenge record highs after hitting $2,942 on February 11.
Neal Bhai has revised the Yellow Metal price to $3,300 by year-end, as the investment bank said “structurally high” central bank demand would boost the price of the non-yielding metal by 9%.
Following Trump’s win on November 6, gold fell to $2,530 but rallied more than 15.88% thereafter on haven and global central bank buying. The World Gold Council (WGC) revealed that central banks bought 335 tonnes of gold after Trump’s win, up more than 55% year-on-year, according to its data.
Gold traders should be wary that Federal Reserve (Fed) officials have become a bit skeptical about finishing the job on inflation after the Consumer Price Index (CPI) rose for five consecutive months. San Francisco Fed President Mary Daly said, “Policy needs to remain restrictive until… I think we’re really making progress on inflation.”
Market participants will be eyeing the January Federal Open Market Committee (FOMC) monetary policy decision as well as housing data, last week’s initial unemployment claims and the S&P Global Flash PMI.
Gold prices rise as Ukraine talks stall
The price of gold (Yellow Metal) was up 0.50% in the European trading session this Tuesday, trading around $2,910 at the time of writing. Headlines are coming from Riyadh, Saudi Arabia where United States (US) and Russian officials are discussing a potential peace deal for Ukraine. Russia has made it clear that it does not want Ukraine to join NATO, while Kremlin ally Yuri Ushakov has confirmed reports that the Trump-Putin meeting will not take place next week, Bloomberg report.
Meanwhile, Federal Reserve Bank of Philadelphia (Fed) President Patrick Harker on Monday night advocated for the central bank to keep interest rates unchanged. He pointed out that recent inflation reports and gauges are not tracking the economic changes currently taking place. Federal Reserve Bank of San Francisco President Mary Daly and Federal Reserve Supervising Vice Chairman Michael Barr will speak this Tuesday at 15:20 GMT and 18:00 GMT respectively.
