Gold Price Today: Yellow metal climbs as US tariff worries fuel safe-haven demand

Gold prices extended gains on Tuesday as uncertainty over US President Donald Trump’s tariff policies kept investors on edge, pushing demand for safe-haven assets higher. Spot gold was up 0.6 per cent at $2,914.75 per ounce, while US gold futures rose 0.9 per cent to $2,927.90 per ounce.

According to Capital.com analyst Kyle Rodda, strong central bank buying and potential shortages in Europe due to increased US demand are fueling the rally. "The fundamentals remain bullish for gold," he added.

Tariff risks keep markets cautious

Since taking office last month, Trump has imposed a 10 per cent tariff on Chinese imports, while also announcing 25 per cent tariffs on Mexico and Canada—later delaying their implementation. His government is also preparing reciprocal tariffs on countries taxing US imports, further adding to market uncertainty.

Goldman raises Gold price target

Goldman Sachs has revised its gold price forecast to $3,100 per ounce by the end of 2025, up from its previous estimate of $2,890. The bank cites structurally higher central bank demand as the key driver. However, if policy uncertainty remains high, speculative buying could push gold to as much as $3,300 per ounce by year-end.

Investors await Fed meeting minutes

With trade tensions rising, investors are now focusing on the US Federal Reserve’s January meeting minutes, due Wednesday, to assess how policymakers view trade-related risks. Fed Governor Michelle Bowman stated that she wants to see stronger signs of easing inflation before supporting another rate cut.

Mixed performance across precious metals

• Spot silver fell 1.1 per cent to $32.42 per ounce.

• Platinum gained 0.7 per cent to $982.39 per ounce.

• Palladium surged 1.9 per cent to $981.03 per ounce.

MCX gold surges

In India, gold prices also continued their upward momentum. On MCX, gold opened at Rs 85,200 per 10 gm, currently trading at an intraday high of Rs 85,439.

HDFC Securities’ Anuj Gupta predicts gold prices will hit Rs 90,000 per 10 gm by the end of 2025, driven by global economic uncertainties and strong demand for the yellow metal. UBS has also raised its gold forecast to $3,200 per ounce, citing higher central bank accumulation and inflation concerns.

With protectionist trade policies, rate cut expectations, and persistent global uncertainties, gold’s bullish momentum is expected to continue in the near term.