Gold prices hit a fresh record on Monday, bolstered by safe-haven demand and a surge in exchange-traded fund inflows, according to new data from the World Gold Council.
The rally comes as investors respond to concerns over potential new US tariffs and ongoing economic uncertainty.
Spot gold reached $2,956.15 per troy ounce during the session before settling at $2,947.48, which according to Reuters marks its eleventh record high this year. US gold futures closed 0.3 percent higher at $2,963.20.
The gains came on the back of strong inflows into physically backed gold ETFs, which saw their largest weekly influx since March 2022. Citing WGC data, Reuters said gold ETFs attracted 52.4 metric tons, valued at $5 billion, last week.
The inflows pushed total holdings up 1.6 percent to 3,326.3 tons, the highest level since August 2023. US-listed funds led the trend, adding 48.7 tons, which more than reversed their outflow record of 6.3 tons in January.
The investor appetite for gold has been shaped by uncertainty surrounding US trade policy. President Donald Trump has threatened a salvo of tariffs in recent weeks, fueling concerns about inflation and potential disruptions to global markets. Historically, such conditions have increased demand for safe-haven assets like gold.
"Investors believe that in the coming weeks and months or longer than that gold prices are going to continue to appreciate," Jim Wyckoff, senior market analyst at Kitco Metals, told Reuters, adding that gold’s trajectory remains "sideways to higher" as long as market uncertainty persists.
The SPDR Gold Trust, the world’s largest gold-backed ETF, reported a rise in holdings to 904.38 metric tons on Friday, also the highest since August 2023.
In an email to InvestmentNews, a spokesperson for SSGA said the ETF reported $1.9 billion in inflows for the day, shattering its previous one-day record of $1.6 billion in January of 2022. GLD also beat its previous weekly high of $3.5 billion in mid-February 2009, during the depths of the financial crisis, pushing it up to a historic $87.2 billion in AUM.
Analysts suggest that gold’s recent strength could continue, with Citi and Goldman joining the chorus of speculators suggesting it could achieve and exceed its next price milestone of $3,000 per ounce. The metal has climbed more than 12 percent since the start of 2025.
Apart from market uncertainty, appetite for gold has traditionally been impacted by bond yields, which is driven by interest rates set by the Federal Reserve. With that in mind, gold bugs and other market participants will be closely watching Friday’s release of the personal consumption expenditures report, the Fed’s preferred measure of inflation.
Multiple Fed officials are also on tap to give speeches this week, potentially giving further insight into the central bank’s stance on interest rates. With Fed Chair Jerome Powell maintaining a patient position for now, a Reuters snapshot poll of economists found a majority expecting the Fed to put off its next rate cut until at least the second quarter.
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