Gold Rises as Investors Seek Safety amid Uncertainty on Trump Tariffs
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.
