Istanbul: 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.
According to Azeri-Press News Agency, spot gold was up 0.7% at $3,311.33/oz, as of 4.16am GMT, while US gold futures rose 0.6% to $3,335.40/oz. Trump’s announcement on Friday about plans to raise tariffs on imported steel and aluminium to 50% from 25% led to a warning from the European Commission, which stated that Europe was prepared to retaliate.
Tim Waterer, chief market analyst at KCM Trade, noted, “With trade and geopolitical worries bubbling to the surface once again, it’s no surprise to see gold ticking higher to start the week.” Hostilities between Ukraine and Russia have escalated ahead of their second round of peace talks in Istanbul, marked by a wave of attacks, including a bold strike by Ukraine and an overnight drone assault by Russia.
Waterer also mentioned, “Risk assets are on the back foot to start the week while a dip in the dollar is also keeping gold supported.” The dollar index edged 0.1% lower, making bullion less expensive for overseas buyers.
Investors are closely monitoring speeches from several US Federal Reserve officials this week for insights into the monetary policy outlook, with Fed chair Jerome Powell scheduled to speak later in the day. Fed governor Christopher Waller indicated that interest rate cuts might be possible later this year, even as the Trump administration’s tariff regime could temporarily increase price pressures.
Gold, considered a safe-haven asset during times of geopolitical and economic uncertainty, generally performs well in a low interest-rate environment. Meanwhile, discussions between Trump and Chinese President Xi Jinping are anticipated soon to address trade issues, including a dispute over critical minerals, as stated by US treasury secretary Scott Bessent on Sunday.
Elsewhere in the commodity markets, spot silver rose 0.3% to $33.08/oz, while platinum decreased by 0.4% to $1,051.63, and palladium fell by 0.3% to $967.62.