Gold (XAU/USD) climbed on Tuesday as European markets opened, trading around $2,912 per ounce. The rise comes as US yields react to market movements following Monday’s President’s Day holiday. Investors are favouring gold amid concerns over tariffs and geopolitical risks.
Gold futures gained 0.7%, reaching $2,922.10 per troy ounce. The metal has strengthened its position as the top safe-haven asset and an inflation hedge, according to Tradu’s Nikos Tzabouras. He notes that gold—up nearly 10% this year—has benefited from Trump’s trade policies, aggressive rhetoric, and potential tariffs, which could disrupt global supply chains. Risk-off sentiment and central bank buying are expected to support prices further. However, a rebound in inflation could prompt the Federal Reserve to hold off on rate cuts, boosting the dollar and weighing on gold demand.
Philadelphia Fed President Patrick Harker stated on Monday that interest rates should remain steady, citing inflation data that may not fully reflect current economic conditions. Later today, speeches from San Francisco Fed President Mary Daly (15:20 GMT) and Fed Vice Chair for Supervision Michael Barr (18:00 GMT) could provide further policy signals.
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