Gold prices bounced back on Tuesday, rising 1.5% to $3,017.8 per ounce, after hitting their lowest level in nearly four weeks on Monday. The recovery was driven by dip-buying, as investors sought safety amid heightened market volatility and growing concerns over the global economy.
The rebound comes as financial markets remain on edge over an escalating trade war. U.S. President Donald Trump reinforced tariff threats against China, while the European Union outlined plans for retaliatory measures. The increasingly tense trade environment has stoked fears of a prolonged economic slowdown or even a global recession.
Despite recent losses, analysts say gold remains fundamentally strong. According to Jigar Trivedi, a senior analyst at Reliance Securities, “Gold continues to hold its upward trajectory thanks to its safe-haven appeal and underlying bullish sentiment.” So far in 2025, gold has gained approximately 15%, supported by sustained demand from central banks and ongoing geopolitical uncertainty.
Trump signaled that he is not considering a temporary pause on tariffs to ease negotiations, though he did express openness to dialogue with key trade partners such as China and Japan. These mixed signals have added to investor uncertainty, boosting interest in gold as a hedge.
Looking ahead, investors will be watching for the release of the U.S. Federal Reserve’s latest meeting minutes on Wednesday, which could provide insight into the central bank’s policy stance. Additionally, inflation data—specifically the Consumer Price Index on Thursday and the Producer Price Index on Friday—could influence expectations around future interest rate decisions.