Gold Prices Surge Amid Rising Global Tensions and U.S. Tariff Threats

LONDON, England – Gold prices rose nearly 2% to reach a one-week high on Monday, driven by safe-haven demand amid renewed tariff threats from President Donald Trump and escalating geopolitical tensions between Russia and Ukraine.

As of 0824 GMT, spot gold was priced at $3,352.69 per ounce, reflecting a 1.9% increase. U.S. gold futures also climbed 1.9%, reaching $3,377.50.

The U.S. dollar saw a decline of 0.5% against other currencies after President Trump announced plans to double tariffs on imported steel and aluminum to 50%. This decrease in the dollar’s value makes gold more attractive to international buyers. Additionally, tensions with China escalated following accusations of violations regarding crucial mineral shipments.

On Sunday, Treasury Secretary Scott Bessent indicated that Trump is expected to discuss these trade issues with Chinese President Xi Jinping soon. Giovanni Staunovo, an analyst at UBS, noted, “The risk-off sentiment with Asian equities lower is one factor, and the rising geopolitical tensions, particularly between Ukraine and Russia, is elevating demand for safe-haven assets like gold.”

The ongoing conflict in Ukraine has intensified with both sides ramping up attacks ahead of their upcoming peace talks in Istanbul. Meanwhile, markets are also preparing for Federal Reserve Chair Jerome Powell’s remarks scheduled for later today, alongside several Fed officials’ speeches this week.

Typically, gold thrives in low-interest-rate settings, seen as a safe investment during periods of uncertainty. Along with gold, spot silver prices rose by 1.3% to $33.42 an ounce, while platinum fell by 0.4% to $1,051.95, and palladium saw a slight increase of 0.1% to $972.25.