Gold climbs as softer dollar, tariff tensions buoy demand

Gold prices gained on Tuesday, helped by safe-haven demand as US President Donald Trump's tariff plans kept investors wary of trade policy, while an overall weaker dollar also lent support.

Spot gold was up 0.4% at $3,223.41 an ounce as of 9.32am ET (1.32pm GMT). Bullion hit a record high of $3,245.42 on Monday. US gold futures rose 0.4% to $3,238.70.

"Traders are waiting for the next major fundamental development to drive the gold market, but the charts remain bullish. There's still safe-haven demand," said Jim Wyckoff, senior analyst at Kitco Metals.

Federal Register filings on Monday showed that the US administration is advancing investigations into pharmaceutical and semiconductor imports in a bid to impose tariffs.

Trump on Sunday said he would announce the tariff rate on imported semiconductors over the next week.

Gold, used as a safe investment during times of political and financial uncertainty, has risen over 23% so far in 2025 and scaled multiple record highs.

"The rise in the gold price is also partly in line with the continuing weakness of the dollar, which points to a gradual erosion of the US currency's status as a safe asset — gold is likely to be an alternative for many USD investors," Commerzbank said in a note.

"The short-term monetary policy outlook is providing further support for gold."

The dollar was trading near a three-year low against its rivals, making gold more attractive for other currency holders.

Financial markets expect the US central bank to resume cutting interest rates in June after pausing in January, and reduce its policy rate by 100 basis points this year.

Investors now await comments from US Federal Reserve chair Jerome Powell, who is scheduled to speak on Wednesday, for more clues on the interest-rate path.

Elsewhere, spot silver eased 0.4% to $32.23 an ounce and platinum rose 1.4% to $964.80, while palladium gained 1.3% to $968.46.