Geopolitical Tensions and Tariff Fears Propel Gold as Investors Seek Safe Haven

This news boosted market sentiment, while a Federal Reserve official suggested a more cautious approach to interest rate cuts this year. Despite the intraday dip, gold had previously seen significant gains, rising over 15% year-to-date and reaching an all-time high.

The uncertainty surrounding Trump's tariff policies and their potential impact on inflation and economic growth continues to be a key driver for investors seeking gold as a safe-haven asset. Federal Reserve President Raphael Bostic signaled expectations of only one rate cut by year-end, a shift from earlier hints of more aggressive reductions.

Market participants are now awaiting U.S. Personal Consumption Expenditures data for further clues on the Fed's monetary policy direction. Other precious metals like silver and platinum also saw gains.