- In 2025, gold has increased by around 15% so far.
- To measure inflation, markets anticipate Friday’s release of the PCE index.
- Following months of withdrawals, the gold boom draws investors back to mining equities.
Gold gained ground on Tuesday as safe-haven demand was fuelled by worries about inflation, trade tensions, and an economic slowdown due to uncertainties around U.S. President Donald Trump’s tariffs, which are anticipated to go into force next week.
As of 04:25 GMT, spot gold GOLD was up 0.1% at $3,015.42 an ounce. Gold futures in the US increased 0.1% to $3,019.40.
“Uncertainty remains over the extent and scope of upcoming U.S. reciprocal tariffs … gold continues to find some support as a hedge against potential surprises,” Yeap Jun Rong, a market analyst at IG,
Wall Street saw Trump’s Monday announcement that car tariffs will soon be implemented as a show of flexibility on a topic that has stirred markets for weeks, even if he also hinted that not all of the duties he had threatened would be implemented on April 2.
Many people believe that Trump’s tariff measures would certainly cause inflation, increase trade tensions, and slow down economic development.
According to Raphael Bostic, president of the Atlanta Federal Reserve, the Fed will only drop its benchmark rate by a quarter of a percentage point by the end of this year since he expects slower inflation development in the upcoming months.
Bullion, which is viewed as a hedge against economic and geopolitical risks, frequently prospers in an environment with low interest rates.
Geopolitical unrest, tariff anxiety, and expectations of rate reduction from the Fed this year have all contributed to gold’s 15% gain so far in 2025.
When the Fed’s favoured inflation indicator, the Personal Consumption Expenditures index, is released on Friday, markets will turn their attention to it.
Funds that invest in gold miners, however, are expected to have their biggest net monthly inflows in more than a year in March as record-high gold prices enhance cash flow and strengthen company profit outlooks.
Spot silver XAGUSD1! increased by 0.3% to $33.1 an ounce, palladium XPDUSD1! increased by 0.3% to $953.78, while platinum PL1! decreased by 0.1% to $973.35.
