Gold hits new record high on tariff worries, exchange-traded fund inflows

Gold prices surged to a record high on Monday, driven by safe-haven demand amid concerns over US President Donald Trump’s tariff plans, with additional support coming from inflows into the world’s top gold-backed exchange-traded fund.

Spot gold rose 0.4% to USD 2,947.48 an ounce as of 01:55 p.m. ET (1854 GMT). It hit USD 2,956.15 earlier in the session — its eleventh record high in 2025.

US gold futures settled 0.3% higher at USD 2,963.20.

US dollar index touched its lowest level since December 10 earlier in the session, making bullion more affordable for buyers using other currencies.

“Investors believe that in the coming weeks and months or longer than that gold prices are going to continue to appreciate,” said Jim Wyckoff, a senior market analyst at Kitco Metals.

“The path of least resistance for gold remains sideways to higher and as long as uncertainty persists, gold is likely to continue rising.”

US President Donald Trump warned of imminent new tariffs last week. These plans are broadly viewed as inflationary and capable of sparking trade wars, thereby increasing the demand for safe-haven assets like bullion.

SPDR Gold Trust GLD, the world’s largest gold-backed ETF, said its holdings rose to 904.38 metric tons on Friday, the highest since August 2023.

Prices holding above USD 2,950 per ounce are drawing investor focus toward the USD 3,000 mark, with the metal up more than 12% in 2025.

Investors will watch Friday’s US Personal Consumption Expenditures report, the Fed’s preferred inflation gauge.

The Fed is likely to wait until next quarter before cutting rates again, according to a majority of economists in a Reuters poll who previously expected a March cut.

Also, on the radar are speeches from at least nine US central bank officials this week, who are expected to reinforce a cautious stance on further rate cuts.

Spot silver fell 0.7% to USD 32.32 an ounce, platinum shed 0.7% to USD 962.70 and palladium lost 2.6% to USD 944.19.

(Reporting by Daksh Grover in Bengaluru. Editing by Jane Merriman, Krishna Chandra Eluri, and Alan Barona)