As global markets continue to face uncertainty, gold prices extended their rally on Tuesday, strongly supported by rising investor demand for safe havens. Particularly, the ongoing ambiguity surrounding U.S. President Trump's tariff policies has led investors to flock to the precious metals market seeking secure asset allocation.
Spot gold rose by 0.6%, reaching $3,230.18 per ounce, near the all-time high of $3,245.42 set on Monday; U.S. gold futures for June delivery also climbed 0.4%, settling at $3,240.40. Jim Wyckoff, a senior analyst at Kitco Metals, noted that although the market is awaiting the next major news to drive trends, the technical outlook remains bullish, and risk aversion continues to support gold's performance.
One source of market tension is the new maneuvers released by the Trump administration on tariffs. According to information published in the Federal Register on Monday, the White House is moving forward with investigations into drug and semiconductor imports, intending to impose tariffs. President Trump also stated on Sunday that he will announce details of semiconductor tariffs in the coming week, a move seen by the market as a potential signal of further trade tensions.
Gold has historically been favored during times of heightened geopolitical and economic uncertainty and has risen by over 23% since 2025, outperforming most traditional asset classes. The consistent setting of new record highs has further attracted both technical traders and long-term capital.
In terms of monetary policy, investors are focusing on the upcoming speech by Federal Reserve Chair Powell, who is expected to comment on interest rate prospects on Wednesday. Given the significant impact of interest rate paths on gold prices, the market will closely follow his remarks on inflation, employment, and policy direction.
Apart from gold, other precious metals showed mixed performance. Spot silver edged down by 0.1% to $32.32 per ounce; platinum rose 0.9% to $959.75; and palladium stood out with a substantial gain of 1.7%, closing at $972.57.
Overall, the gold market is in a strong cycle, with short-term price gains fueled by risk aversion, a weaker dollar, and bullish technicals, although investors should also be wary of policy changes and macroeconomic surprises that may introduce volatility.
