Gold prices reached a record high of $2,944 on Monday’s opening bell and are currently trading in the $2,940 range. The XAU/USD index which tracks the performance of the precious metal is up nearly 3 points in the day’s trade. The glittery metal has continued its bull run in 2025 with no signs of slowing down. It is up almost 12% year-to-date and achieved the remarkable feat in less than two months. Traders who took an entry position in gold last year are enjoying stellar profits this quarter. Read here to know when the gold price could hit the $3,000 mark.

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Why Are Gold Prices Rising?

All eyes are now moving towards inflation as the latest data shows that the US Inflation Rate touched 3%, compared to 2.89% last month. In addition, trade uncertainties are making the markets worrisome with the US imposing tariffs on other countries. The retaliation tariffs are also causing investors to remain cautious as the natural flow of trade is being impacted. The tensions have made institutional funds seek safe haven in gold making its prices shoot up in the indices.

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The development has impacted the US dollar’s prospects making the DXY index dip to the 106 range. The DXY index, which measures the performance of the US dollar shows the currency trading at 106.31 on Monday. It is down from a high of 110.18 and has now reached its November 2024 lows. Gold prices outperform the US dollar in 2024 making it take the top spot in the broader commodity markets.

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“Disappointing US macro data at the tail end of last week has caught up with the dollar, which has opened the door higher for gold,” prices said Tim Waterer, Chief Market Analyst at KCM Trade. “With trade uncertainties not looking like they are disappearing anytime soon, gold could still be eyeing off reaching new all-time highs again this week,” he said to Reuters.