Gold Prices Today: Yellow metal hits one-week low after record-high amid trade war concerns, silver down 3% | Stock Market News

Gold Prices Today: The yellow metal dropped to its lowest level in over a week on Tuesday, February 25, after global investors booked profits in international markets. The weakness came gold hit a record high in the previous session on ongoing fears of instability around US President Donald Trump’s tariff plans.

Spot gold last fell 1.8 per cent to $2,998.18 an ounce, hitting its lowest level since February 17, earlier in the session. Gold hit its record high at $2,956.15 on Monday. US gold futures declined 1.8 per cent to $2,909.30. Safe-haven gold has hit eleven record highs this year, crossing the $2,950/oz milestone. Spot silver last shed 2.9 per cent to $31.41 an ounce, platinum dropped one per cent to $957.25 and palladium lost 1.5 per cent to $926.21.

Gold Prices Today: What’s dragging the yellow metal?

-Donald Trump said on Monday that tariffs on Canadian and Mexican imports were “on time and on schedule” despite efforts by the countries to beef up border security and halt the flow of fentanyl into the US ahead of a March 4 deadline. US tariffs have sparked concerns over a trade war in global markets.

-According to news agency Reuters, 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 now 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 US Fed to keep rates higher, tarnishing non-yielding gold’s appeal. Investors now await Friday’s release of the US Personal Consumption Expenditures (PCE) report, the US Fed’s preferred inflation gauge, for insights into the central bank’s rate-easing path and monetary policy.

Gold Prices Today: Where is the yellow metal headed?

COMEX gold futures surged to a record high of $2,974 per ounce on Monday, driven by escalating geopolitical tensions and strong inflows into gold-backed ETFs. Concerns over the Israel-Hamas ceasefire, stalled Russia-Ukraine peace talks, and US trade protectionism have sparked safe-haven buying.

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“Comex gold remained range-bound $2,930-$2,955, staying in its consolidation phase over the past few sessions,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities. “Market participants are focused on the upcoming PCE Price Index, which could act as the next major trigger, alongside ongoing developments in Trump’s tariff policies.”

Investment demand remains robust, with World Gold Council (WGC) data showing a significant 48-tonne inflow, valued at $4.6 billion, into North American gold-backed ETFs last week, the largest weekly increase since April. SPDR Gold holdings rose to 904.38 tonnes, the highest since August 2023.

“Today, gold dipped slightly to around $2,953 per ounce, though a sharp decline seems unlikely, as concerns over Trump’s tariff proposals and Russia’s largest-ever drone attack on Ukraine will likely to keep the global risk appetite restrained,” said Kaynat Chainwala, AVP – Commodity Research.

Meanwhile, US consumer sentiment dropped to a 15-month low, and long-term inflation expectations reached a 30-year high amid growing fears that President Donald Trump’s broad tariffs could worsen inflation, highlighting a weak economic outlook and fueling expectations for another rate cut as early as July.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.