Gold Hits Record High Amid Geopolitical Tensions and Trade Uncertainty

Gold prices surged to new highs on February 24, 2025, driven by escalating geopolitical tensions and trade policy fears. On the COMEX market, April gold futures closed at $2,963.20 per troy ounce, marking a 0.33% gain for the day.

This rally extended gold’s longest weekly winning streak since 2020, with prices hovering near an all-time high of $2,956 in early Asian trading on February 25. The ongoing Russia-Ukraine war remains a key driver of gold’s safe-haven appeal.

Russia’s largest drone attack in months heightened investor anxiety, while visits by European leaders and Canadian Prime Minister Justin Trudeau to Ukraine underscored the region’s instability.

Analysts noted that fears of reduced U.S. support for Ukraine under President Donald Trump’s administration added to the uncertainty. Trade policy concerns also bolstered gold’s rise.

President Trump recently directed his administration to evaluate tariffs on trading partners imposing regulations on U.S. tech firms. This move renewed fears of a trade war, further increasing demand for gold as a hedge against economic instability.

A weaker U.S. dollar amplified gold’s appeal. The Dollar Index (DXY) has declined significantly since January, making gold more affordable for international buyers.

Gold Market Update

Meanwhile, U.S. bond yields fell, enhancing the attractiveness of non-yielding assets like gold. Investor activity reflected this heightened demand. The SPDR Gold Trust, the largest gold-backed ETF, reported holdings of 904.38 metric tons, the highest since August 2023.

Strong ETF inflows highlight sustained interest in gold as a safe-haven asset amid global turmoil. Domestic markets mirrored global trends. In India, 24K gold traded at ₹87,880 per 10 grams, while silver rose ₹100 to ₹1,01,100 per kilogram.

Retail demand from jewelers and seasonal buyers supported these gains. Technical analysis suggests continued bullish momentum for gold. Prices remain above key support levels at $2,930 and could test $3,000 if resistance at $2,965 is breached.

However, analysts caution that upcoming U.S. inflation data could influence Federal Reserve policy expectations and impact gold prices. As geopolitical and economic uncertainties persist, gold continues to shine as a reliable safe-haven asset for investors worldwide.

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