Gold prices rose on Tuesday, buoyed by investor uncertainty over U.S. trade policy and a declining dollar, as market participants continued to seek refuge in safe-haven assets.
Spot gold increased 0.6% to $3,230.18 per ounce by mid-afternoon in New York, just shy of the record high of $3,245.42 set on Monday. U.S. gold futures settled 0.4% higher at $3,240.40.
The upward movement came as the dollar weakened to near three-year lows, making gold more appealing for holders of other currencies. Analysts noted that the metal’s continued appeal stems not only from geopolitical and trade tensions but also from evolving expectations around U.S. monetary policy.
“Traders are waiting for the next major fundamental development to drive the gold market, but the charts remain bullish,” said Jim Wyckoff, senior analyst at Kitco Metals. “There’s still safe-haven demand.”
Recent filings in the Federal Register indicate that the U.S. administration is moving forward with investigations into pharmaceutical and semiconductor imports, a prelude to potential new tariffs. President Donald Trump stated on Sunday that the tariff rate on imported semiconductors would be revealed within the week, fueling additional market jitters.
Gold, often viewed as a hedge against political and financial instability, has surged more than 23% so far in 2025, setting a series of all-time highs. Commerzbank analysts noted that the metal is increasingly being favored as confidence in the U.S. dollar erodes. “Gold is likely to be an alternative for many USD investors,” the bank said in a research note, pointing to a diminished perception of the dollar as a safe asset.
Expectations that the Federal Reserve will resume interest rate cuts in June—following a pause in January—are also supporting bullion prices. Markets are pricing in a full percentage point of easing by the end of the year. Investors will be watching closely for Fed Chair Jerome Powell’s comments on Wednesday for further guidance on the central bank’s policy path.
In other precious metals, spot silver edged down 0.1% to $32.32 per ounce. Platinum rose 0.9% to $959.75, while palladium climbed 1.7% to $972.57.
