NEW YORK: Gold prices eased on Tuesday as investors booked profits after a record high in the previous session, with ongoing fears of a trade war and instability driven by US President Donald Trump’s tariff plans still fuelling safe-haven flows. Spot gold fell 0.6% to $2,934.99 an ounce as of 09:55 a.m. (1455 GMT), after reaching $2,956.15 on Monday.
US gold futures declined 0.5% to $2,948.60. “We still believe the sideways to higher trend is intact. We’re really viewing this as nothing more (than) fairly typical little profit-taking,” said David Meger, director of metals trading at High Ridge Futures. Safe-haven gold has hit eleven record highs this year so far, surpassing the significant $2,950/oz milestone.
Gold speculators cut net long positions by 13,605 contracts to 201,962 in the week to February 18, while SPDR Gold Trust holdings rose to 904.38 metric tons on Friday, the highest since August 2023. Meanwhile, investors and economists expect the US Federal Reserve to respond “strongly and systematically” to changes in inflation and the labor market, according to research published on Monday by the San Francisco Fed.
Higher inflation may force the Fed to keep rates higher, tarnishing non-yielding gold’s appeal. Investors now await Friday’s release of the US Personal Consumption Expenditures report, the Fed’s preferred inflation gauge, for insights into the central bank’s rate-easing path and monetary policy.
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