On Tuesday morning (February 25th), spot gold fluctuated narrowly at a high level in the Asian market, currently trading around $2951.24 per ounce. Gold prices rose 0.56% on Monday, hitting a record high of $2956.01 per ounce during trading, closing at $2952.51 per ounce. This was due to the safe haven demand sparked by US President Trump's tariff plan and an increase in holdings of the world's largest gold backed exchange traded fund (ETF) to a new high since August 2023.

The US dollar index hit its lowest level since December 10th earlier on Monday, making gold cheaper for buyers using other currencies.

Last week, US President Trump warned of the imminent imposition of new tariffs. These plans are widely believed to stimulate inflation and may trigger a trade war, thereby increasing demand for safe haven assets such as gold.

US President Trump said on Monday (February 24th) that plans to impose tariffs on Mexico and Canada will "proceed as scheduled".

Trump held a joint press conference with visiting French President Macron at the White House that day. When asked about the upcoming deadline for the US to impose tariffs on Mexico and Canada next month, Trump said that the tariffs are being pushed forward as planned and seem to be progressing "very quickly". He also said that the United States has been treated "very badly" by many trading partners, not just Canada and Mexico, but the United States has been "taken advantage of".

In addition to issues related to the Russia-Ukraine conflict, President Trump of the United States also explained his tariff measures against the EU. Trump stated that tariffs on the European Union are not an increase, but are equivalent. That is, we will respond to the tariffs they impose on us. This applies to the EU, but in reality it applies to everyone

Investors believe that gold prices will continue to rise in the coming weeks, months, or even longer, "said Jim Wyckoff, senior market analyst at Kitco Metals." The path of least resistance for gold is still sideways to upward, and as long as uncertainty persists, gold is likely to continue to rise

The world's largest gold ETF, SPDR Gold Trust GLD, saw its holdings increase by 3.15 tons on Monday, marking the fifth consecutive trading day of growth and reaching 907.53 tons, the highest since August 2023; Last Friday, it increased by 20.66 tons, marking the largest daily increase in holdings since January 21, 2022.

Analysts point out that if the gold price remains above $2950 per ounce, it will attract investors' attention to the $3000 mark, and the gold price will increase by more than 12% in 2025.

Investors will focus on Friday's release of the US Personal Consumption Expenditures (PCE) Price Index, which is the Federal Reserve's preferred inflation indicator.

In addition, at least nine Federal Reserve decision-makers will give speeches this week, and it is expected that they will strengthen their cautious stance on further interest rate cuts.

On Tuesday, Federal Reserve Governor Baldur will give a speech on financial stability, and Federal Reserve Governor Baldur will give a speech on inflation, which investors need to pay close attention to. In addition, pay attention to the Consumer Confidence Index of the Conference Board in February and the Richmond Federal Reserve Manufacturing Index in February. Continue to monitor the latest developments related to Trump and the progress of the Russia Ukraine situation.