Gold prices recovered to $2,917 per ounce, closing in on the recent high of $2,942.70 as the U.S. dollar weakened and trade tensions rose. The softer dollar made bullion relatively cheaper for holders of other currencies, boosting demand for the metal as a hedge against market volatility.
Escalating worries over reciprocal tariffs announced by President Trump added to investor uncertainty, prompting flows into safe-haven assets. At the same time, the Federal Reserve has signalled a cautious approach to cutting interest rates, a stance that tends to support gold by keeping real yields low or uncertain.
Analysts at ANZ say that sustained global economic risks and ongoing geopolitical frictions could lift gold toward $3,000 per ounce this year. Persistent concerns around trade, slower growth in key economies, and cautious central bank policy are cited as factors that may continue to underpin demand for bullion.