Gold edges higher as Trump’s tariff plans fuel safe-haven demand
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Gold prices remained firm on Monday, trading near record highs, as investors sought refuge from mounting trade tensions triggered by President Donald Trump’s tariff threats.
Gold extends gains amid global uncertainty
Spot gold climbed 0.3% to $2,868.66 per ounce, holding just below Friday’s all-time high of $2,886.62. Meanwhile, U.S. gold futures advanced 0.2% to $2,894.00. The rally in bullion follows Trump’s weekend announcement that he will impose fresh 25% tariffs on all steel and aluminum imports into the U.S., further escalating his trade policy overhaul. He also hinted at reciprocal tariffs on multiple countries, set to be announced by Monday or Tuesday. Kelvin Wong, senior market analyst at Oanda, noted that gold could reach $2,900 to $2,910 in the near term as trade tensions remain elevated.
Safe-haven demand vs. Rate hike uncertainty
Gold is traditionally favored in times of economic and financial turmoil, but its appeal can be limited by rising interest rates, which increase the opportunity cost of holding non-yielding assets. On Friday, Federal Reserve officials acknowledged the strength of the U.S. job market while maintaining a cautious stance on rate cuts. They also highlighted uncertainty over how Trump’s trade policies might impact inflation and economic growth.
Geopolitical backdrop and outlook
Beyond trade concerns, geopolitical risks continue to provide support for gold. Trump said he sees progress in U.S. efforts to mediate the Russia-Ukraine war, though he did not disclose details of his conversations with russian President Vladimir Putin.
Other precious metals
Spot silver remained steady at $31.82 per ounce; platinum dipped 0.3% to $973.60 per ounce; palladium edged up 0.4% to $968.29 per ounce. With trade uncertainty and global tensions persisting, gold’s bullish momentum is expected to continue unless a significant Dollar rally pressures the metal downward.
Gold extends gains amid global uncertainty
Spot gold climbed 0.3% to $2,868.66 per ounce, holding just below Friday’s all-time high of $2,886.62. Meanwhile, U.S. gold futures advanced 0.2% to $2,894.00. The rally in bullion follows Trump’s weekend announcement that he will impose fresh 25% tariffs on all steel and aluminum imports into the U.S., further escalating his trade policy overhaul. He also hinted at reciprocal tariffs on multiple countries, set to be announced by Monday or Tuesday. Kelvin Wong, senior market analyst at Oanda, noted that gold could reach $2,900 to $2,910 in the near term as trade tensions remain elevated.
Safe-haven demand vs. Rate hike uncertainty
Gold is traditionally favored in times of economic and financial turmoil, but its appeal can be limited by rising interest rates, which increase the opportunity cost of holding non-yielding assets. On Friday, Federal Reserve officials acknowledged the strength of the U.S. job market while maintaining a cautious stance on rate cuts. They also highlighted uncertainty over how Trump’s trade policies might impact inflation and economic growth.
Geopolitical backdrop and outlook
Beyond trade concerns, geopolitical risks continue to provide support for gold. Trump said he sees progress in U.S. efforts to mediate the Russia-Ukraine war, though he did not disclose details of his conversations with russian President Vladimir Putin.
Other precious metals
Spot silver remained steady at $31.82 per ounce; platinum dipped 0.3% to $973.60 per ounce; palladium edged up 0.4% to $968.29 per ounce. With trade uncertainty and global tensions persisting, gold’s bullish momentum is expected to continue unless a significant Dollar rally pressures the metal downward.