Gold prices reached an all-time high on January 31, 2025, briefly touching $2,800 per ounce as investors flocked to the safe-haven asset following U.S. President Donald Trump's renewed tariff threats.
Spot gold stabilized at $2,794.58 per ounce by 0930 GMT, after hitting a peak of $2,800.99 earlier. The metal saw a monthly increase of over 6% and a weekly rise of 1%. U.S. gold futures remained steady at $2,824.90.
Market analysts suggest that the upward trend in gold prices may persist as uncertainty looms over potential tariffs. Trump announced a 25% duty on imports from Mexico and Canada, with additional tariffs on Chinese goods under consideration.
Gold is traditionally viewed as a secure investment during economic and geopolitical instability. Analysts from Julius Baer noted that central bank purchasing is a significant driving force in the gold market.
Attention now shifts to the upcoming U.S. personal consumption expenditures price index report, which is expected to provide insights into inflation trends. Earlier data indicated a slowdown in U.S. economic growth during the fourth quarter, although consumer spending surged at its fastest pace in nearly two years.
The combination of high inflation and sluggish growth could push gold prices toward the $3,000 mark, according to analysts.
In related markets, spot silver decreased by 0.2% to $31.61, while platinum rose by 0.7% to $973.85. Palladium remained unchanged at $989.16, with both metals on track for monthly gains.