Gold climbed to approximately $2,990 per ounce on Monday, hovering near record highs as strong safe-haven demand persisted amid escalating trade tensions and geopolitical instability. Investors continued to seek refuge in the precious metal as uncertainty loomed over global markets.
Gold hovers near record high
The U.S. reaffirmed its commitment to striking Yemen’s Houthis until they halt attacks on Red Sea shipping, fueling concerns over potential disruptions to global trade routes and increasing geopolitical risks. Additionally, fears of a prolonged trade war intensified as the U.S. and its key trading partners exchanged fresh tariff threats, heightening worries about inflation and economic slowdowns.
Meanwhile, gold demand remained robust, supported by continued inflows into exchange-traded funds (ETFs) and ongoing central bank purchases. China, in particular, extended its gold acquisitions for a fourth consecutive month, reinforcing expectations that central banks will remain key buyers in 2025 to hedge against currency volatility and geopolitical risks.
Investors monitor upcoming central bank meetings
Looking ahead, investors are closely monitoring upcoming central bank policy meetings, with particular focus on the U.S. Federal Reserve’s decision later this week. The Fed is widely expected to keep interest rates steady amid lingering uncertainty surrounding President Donald Trump’s economic policies. Markets have scaled back expectations for aggressive monetary easing, now anticipating just two rate cuts this year instead of the three previously projected. Any hawkish signals from the Fed could temper gold’s rally, though persistent macroeconomic risks are likely to keep prices well-supported in the near term.
