Bullion hit record peak of $2,942.70 last week
Central bank buying should continue to support gold- Commerzbank
Fed’s January meeting minutes due on Wednesday
Feb 18 – Gold prices rose over 1% on Tuesday as concerns over economic growth, due to uncertainty surrounding U.S. President Donald Trump’s tariff plans, prompted safe-haven flows into bullion.
Spot gold gained 1.2% to $2,932.79 an ounce as of 2:11 p.m. ET after hitting a record high of $2,942.70 last week.
U.S. gold futures settled 1.7% higher at $2,949.
“We are seeing increased safe-haven demand due to the disrupted nature of the Trump administration and we have also got a bullish chart posture,” said Jim Wyckoff, a senior market analyst at Kitco Metals.
Since taking office last month, Trump has swiftly redrawn the global trade battlefield with a series of tariffs, while plans are already in motion for sweeping reciprocal tariffs, aimed squarely at any nation that taxes U.S. products.
“Central bank buying should also continue to provide support,” Commerzbank analysts said in a note.
The market’s focus has now shifted to the U.S. Federal Reserve’s January meeting minutes, due on Wednesday, for clues into the central bank’s interest rate trajectory.
“If the economy starts to sputter because of the trade tariffs and such, then we could see some lower interest rates,” Wyckoff added.
Safe-haven bullion benefits from geopolitical and economic uncertainties and tends to thrive in a low-interest rate environment as it yields no interest.
“While the broader trend remains intact, the risk of a deeper pullback cannot be ignored at these elevated levels. For gold to reach new highs, it may take an escalation in the geopolitical risks, particularly about Ukraine,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.
was up 0.2% at $32.84 an ounce. Platinum rose 0.9% to $983.75 and palladium climbed 2.5% to $986.50.
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