On Thursday, February 15, 2025, international gold prices rose, propelled by U.S. President Trump's announcement of a reciprocal tariff plan. This move by Trump has sparked concerns over intensified global trade tensions, further bolstering investors' demand for safe-haven assets.
Spot gold rose 0.4%, trading at $2,915.76 per ounce, recovering from the all-time high of $2,942.70 set on Tuesday. U.S. gold futures increased by 0.6%, closing at $2,945.40 per ounce. Trump's policy roadmap indicates that the U.S. will impose reciprocal tariffs on every country that levies tariffs on imports to the U.S., amplifying market uncertainty about the future direction of global trade relations.
Meanwhile, solid growth in the U.S. Producer Price Index (PPI) for January further confirms rising inflation pressures, strengthening market expectations that the Federal Reserve will not cut interest rates before the second half of 2025. This is also one of the significant factors driving the increase in gold prices. According to Jeffrey Christian, managing partner at CPM Group, the current trends in gold prices are mainly influenced by political uncertainty and economic outcomes, whereas the PPI data has a minor direct impact on the gold market. Global investors are concerned about the potential impact of Trump's policies on the overall economy, thereby increasing the demand for safe-haven assets like gold.
Federal Reserve Chairman Powell reiterated in his second congressional testimony this week that the Fed is in no hurry to cut interest rates, which also causes financial markets to remain cautious about future monetary policy and further boosts the allure of gold.
In other precious metals, spot silver fell 0.2% to $32.15 per ounce, platinum decreased by 0.1% to $991.25, while palladium rose 1.6% to $989.50, driven by demand from the automotive industry and supply constraints, showing strong performance.
Overall, global economic uncertainty, especially with the announcement of Trump's reciprocal tariff policy, is driving investors towards safe-haven assets like gold, with concern over future economic conditions expected to continue affecting trends in the precious metals market.
