Gold climbs as softer dollar, tariff tensions buoy demand

Gold prices gained on Tuesday, helped by safe-haven demand as US President Donald Trump’s uncertain tariff plans kept investors on edge, while an overall weaker dollar also lent support.

Spot gold was up 0.6% at USD 3,230.18 an ounce as of 1:47 p.m. ET (1747 GMT). Bullion hit a record high of USD 3,245.42 on Monday.

US gold futures rose 0.4% to settle at USD 3,240.40.

“Traders are waiting for the next major fundamental development to drive the gold market, but the charts remain bullish. There’s still safe-haven demand,” said Jim Wyckoff, senior analyst at Kitco Metals.

Federal Register filings on Monday showed the US administration is advancing investigations into pharmaceutical and semiconductor imports in a bid to impose tariffs.

Trump said on Sunday he would announce the tariff rate on imported semiconductors over the next week.

The price of gold, a safe haven during times of political and financial uncertainty, has risen over 23% so far in 2025 and scaled multiple record highs.

“The rise in the gold price is also partly in line with the continuing weakness of the dollar, which points to a gradual erosion of the US currency’s status as a safe asset – gold is likely to be an alternative for many USD investors,” Commerzbank said in a note.

“The short-term monetary policy outlook is providing further support for gold.”

The dollar neared a three-year low against its rivals, making gold more attractive for other currency holders.

Financial markets expect the Federal Reserve to resume cutting interest rates in June after pausing in January, and reduce its policy rate by 100 basis points this year.

Investors now await comments from Fed Chair Jerome Powell, who is scheduled to speak on Wednesday, for more clues on the interest rate path.

Elsewhere, spot silver eased 0.1% to USD 32.32 an ounce and platinum rose 0.9% to USD 959.75, while palladium gained 1.7% to USD 972.57.

(Reporting by Brijesh Patel and Ishaan Arora in Bengaluru; Editing by Susan Fenton, Shreya Biswas, and Richard Chang)