Gold prices surge on Monday, jumping over 2% as investors responded to a weaker dollar and global uncertainty. This movement followed new U.S. tariffs that reignited fears of a global trade conflict. By late morning in London, spot gold rose 2.3% to $3,313.21 per ounce. Meanwhile, U.S. gold futures increased by 2.4%, reaching $3,322.
The sharp increase came shortly after U.S. President Donald Trump imposed a 100% tariff on foreign-made movies. Although he gave few details, the announcement heightened market concerns. Investors reacted by moving funds into traditional safe-haven assets like gold.
Gold prices surge whenever market risks grow, and this week brought plenty of uncertainty. The U.S. dollar weakened due to disappointing GDP figures released last week. Analysts now believe the Federal Reserve may cut interest rates sooner than expected. This possibility further boosted demand for gold.
Carlo Alberto De Casa from Swissquote said many traders now expect lower rates. He added that recent oil market instability adds to gold’s appeal. Even though the Fed is expected to hold rates steady this Wednesday, investors will focus on the central bank’s outlook. Jerome Powell’s remarks and new economic projections could drive further price changes.
President Trump also clarified that Jerome Powell will remain Fed Chairman until May 2026. Still, Trump repeated his call for the Fed to reduce rates. The tension between political demands and monetary policy continues to stir the markets.
Gold prices surge during periods of economic risk, low interest rates, and inflation. The metal provides stability for investors seeking protection. With recession concerns rising, this trend may continue.
Goldman Sachs noted in a report that global gold demand remains strong in 2025. It highlighted slowing Chinese solar production and ongoing central bank purchases. Silver, platinum, and palladium also recorded gains, though none matched gold’s performance.
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