Gold prices rose over 1 per cent on Tuesday as a weaker dollar and uncertainty over the US tariffs, along with concerns about the country’s fiscal outlook drove investors toward safe-haven assets. Spot gold was up 1.3 per cent at $3,347.42 per ounce, while the US gold futures rose 1.6 per cent to $3,359.30. The US dollar weakened to its lowest level since early 2022, making gold less expensive for overseas buyers.
Gold Rate Prediction
“The precious metal’s safe-haven appeal is being boosted by concerns over the US fiscal outlook and ongoing tariff-related uncertainty, as the Trump administration keeps all options on the table ahead of the looming July deadline,” said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades.
“I expect prices to move higher in the near term, attracting additional buying interest as they approach $3,350, with the next significant resistance level around $3,370,” Evangelista added.
Gold is seen as a safe haven during times of economic uncertainty and tends to perform well in low-interest rate environments.
Citi analysts said in a note that they expect gold prices to consolidate between $3,100 and $3,500 in the third quarter of the year, noting that the late April peak of $3,500 may already be the high as the gold market deficit approaches its peak.
FAQs
Q1. What are gold prices?
A1. Gold prices rose over 1 per cent on Tuesday as a weaker dollar and uncertainty over the US tariffs, along with concerns about the country’s fiscal outlook drove investors toward safe-haven assets. Spot gold was up 1.3 per cent at $3,347.42 per ounce, while the US gold futures rose 1.6 per cent to $3,359.30.
Q2. What are gold price projections?
A2. Citi analysts said in a note that they expect gold prices to consolidate between $3,100 and $3,500 in the third quarter of the year. HSBC has raised its 2025 average gold price forecast to $3,215 per ounce from $3,015 an ounce previously, the bank said in a note on Tuesday, while also raising its 2026 price forecast to $3,125 an ounce from $2,915.
