Gold, often regarded as a secure investment amid geopolitical and economic turmoil, has reached several record highs this year, particularly benefiting from a low-interest-rate climate. Gold reaches unprecedented levels amid rising concerns over economic growth. On Tuesday, gold prices surged to an unprecedented peak, propelled by a declining dollar, escalating trade war tensions, and apprehensions regarding global economic growth stemming from U.S. President Donald Trump’s tariff strategies, which have resulted in increased safe-haven investments.
Spot gold experienced a notable increase of 1.1%, reaching $3,261.79 an ounce as of 0028 GMT. This surge follows a peak earlier in the session, where it touched a record high of $3,266.65 per ounce. U.S. gold futures experienced an increase of 1.2%, reaching a price of $3,279.20.
The dollar index experienced a decline of 0.3% against its competitors, enhancing the appeal of gold for holders of alternative currencies.
On Monday, filings in the Federal Register indicated that the U.S. administration is progressing with investigations into imports of pharmaceuticals and semiconductors, with the intention of potentially imposing tariffs. In a significant development last week, former President Trump announced an increase in tariffs on Chinese imports to 145%. In response, Beijing has retaliated by raising tariffs on American goods to 125%.
Investors are closely monitoring the upcoming U.S. retail sales data, set to be released later today, as it will provide critical insights into the state of the economy and the Federal Reserve’s monetary policy strategies. ANZ has indicated that the growing risks of a more profound recession, shifts in the geopolitical landscape, interruptions in global supply chains, concerns over rising inflation, and a changing interest rate outlook all point to gold maintaining a robust position in the near term. ANZ has increased its year-end gold price forecast to $3,600 per ounce, while also adjusting its six-month forecast to $3,500.
Spot silver experienced a modest increase of 0.3%, reaching $32.40 per ounce, while platinum saw a slight decline of 0.1%, settling at $958.15. Similarly, palladium also dipped by 0.1%, with a price of $970.25.