PRECIOUS-Gold hits new record high on tariff worries, exchange-traded fund inflows

Updates for market close

By Daksh Grover

Feb 24 (Reuters) - Gold prices surged to a record high on Monday, driven by safe-haven demand amid concerns over U.S. President Donald Trump's tariff plans, with additional support coming from inflows into the world's top gold-backed exchange-traded fund.

Spot gold XAU= rose 0.4% to $2,947.48 an ounce as of 01:55 p.m. ET (1854 GMT). It hit $2,956.15 earlier in the session — its eleventh record high in 2025.

U.S. gold futures GCcv1 settled 0.3% higher at $2,963.20.

U.S. dollar index .DXY touched its lowest level since December 10 earlier in the session, making bullion more affordable for buyers using other currencies. USD/

"Investors believe that in the coming weeks and months or longer than that gold prices are going to continue to appreciate," said Jim Wyckoff, a senior market analyst at Kitco Metals.

"The path of least resistance for gold remains sideways to higher and as long as uncertainty persists, gold is likely to continue rising."

U.S. President Donald Trump warned of imminent new tariffs last week. These plans are broadly viewed as inflationary and capable of sparking trade wars, thereby increasing the demand for safe-haven assets like bullion.

SPDR Gold Trust GLD, the world's largest gold-backed ETF, said its holdings rose to 904.38 metric tons on Friday, the highest since August 2023. GOL/ETF

Prices holding above $2,950 per ounce are drawing investor focus toward the $3,000 mark, with the metal up more than 12% in 2025.

Investors will watch Friday's U.S. Personal Consumption Expenditures report, the Fed's preferred inflation gauge.

The Fed is likely to wait until next quarter before cutting rates again, according to a majority of economists in a Reuters poll who previously expected a March cut. FEDWATCH

Also, on the radar are speeches from at least nine U.S. central bank officials this week, who are expected to reinforce a cautious stance on further rate cuts.

Spot silver XAG= fell 0.7% to $32.32 an ounce, platinum XPT= shed 0.7% to $962.70 and palladium XPD= lost 2.6% to $944.19.