Gold prices rise as global tensions intensify and investors seek safer options. On Monday, gold surged more than 1%, driven by rising fears over new tariffs and the worsening war in Ukraine. As of early morning trading, spot gold reached $3,326.45 per ounce. Meanwhile, U.S. gold futures climbed 1.1% to $3,351. This movement followed a dramatic statement by U.S. President Donald Trump. He announced plans to double tariffs on imported steel and aluminum, increasing them from 25% to 50%.
In response, the European Commission warned it would retaliate, increasing pressure on global markets. Gold prices rise when uncertainty spreads. Investors naturally flock to bullion, which serves as a traditional safe haven during unstable times.
Analysts say this trend isn’t surprising. Tim Waterer, chief market analyst at KCM Trade, said gold often ticks higher during geopolitical flare-ups. He added that trade risks and rising conflict continue to push risk assets lower, making gold more attractive.
Over the weekend, Ukraine launched one of its boldest attacks, while Russia responded with overnight drone strikes. Peace talks are scheduled, but both sides show no signs of slowing down military efforts. Alongside these tensions, the U.S. dollar slightly weakened. The dollar index dropped by 0.1%, making gold more affordable for buyers using other currencies.
At the same time, markets await key speeches from U.S. Federal Reserve officials. Many hope for clarity on interest rate decisions. Later today, Fed Chair Jerome Powell is expected to address monetary policy direction. However, despite inflation concerns from Trump’s tariff policy, Fed Governor Christopher Waller hinted at possible rate cuts this year. Lower interest rates usually support higher gold prices.
Trade tensions between the U.S. and China are also back in focus. Treasury Secretary Scott Bessent said Trump and Chinese President Xi Jinping plan to speak soon. Their talk may address mineral trade disputes and other lingering issues. Elsewhere in the metals market, silver rose to $33.16 per ounce. Platinum slipped slightly to $1,050.83, and palladium held steady at $970.31.
As gold prices rise, investors remain cautious, watching headlines and central bank comments closely. In uncertain times, gold continues to shine.
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