Gold prices climbed on Monday as an escalation in the Russian war in Ukraine and US President Donald Trump’s fresh threat to double tariffs on imported steel and aluminium prompted investors to seek refuge in safe-haven bullion, APA reports citing Business day.
Spot gold was up 0.7% at $3,311.33/oz, as of 4.16am GMT. US gold futures rose 0.6% to $3,335.40/oz.
Trump said on Friday that he planned to raise tariffs on imported steel and aluminium to 50% from 25%, prompting the European Commission to warn that Europe was prepared to retaliate.
“With trade and geopolitical worries bubbling to the surface once again, it’s no surprise to see gold ticking higher to start the week,” said Tim Waterer, chief market analyst at KCM Trade.
Ukraine and Russia escalated hostilities before their second round of peace talks in Istanbul, with a wave of attacks that included one of Ukraine’s boldest strikes of the war and an overnight drone assault by Russia.
“Risk assets are on the back foot to start the week while a dip in the dollar is also keeping gold supported,” Waterer said.
The dollar index edged 0.1% lower, making bullion less expensive for overseas buyers.
Markets are awaiting speeches from several US Federal Reserve officials this week for cues on the monetary policy outlook, with Fed chair Jerome Powell set to speak later in the day.
Fed governor Christopher Waller said that interest rate cuts remained possible later this year even as the Trump administration’s tariff regime was likely to push up price pressures temporarily.
Gold, which is considered a safe-haven asset during a time of geopolitical and economic uncertainty, tends to thrive in a low interest-rate environment.
Meanwhile, Trump and Chinese President Xi Jinping are expected to speak soon to iron out trade issues including a dispute over critical minerals, according to US treasury secretary Scott Bessent on Sunday.
Elsewhere, spot silver rose 0.3% to $33.08/oz, platinum was down 0.4% at $1,051.63 and palladium fell 0.3% to $967.62.
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