US President Donald Trump’s recent tariff proposals increased concerns about a global trade war, which fuelled demand for the safe-haven metal and drove bullion prices to all-time highs, causing gold to rise more than 1% on Monday.
As of 0758 GMT, spot gold was up 1.2% at $2,895.38 an ounce. Bullion reached its sixth record of the year earlier in the session, reaching an all-time high of $2,896.35. Additionally, US gold futures increased 1.2% to $2,920.8.
“Trump’s announcement of extra tariffs is raising the yellow metal in support of fears about inflation and growth. According to Giovanni Staunovo, an analyst at UBS, “we look for further price support, with gold heading to $3,000/oz.
Trump said over the weekend that, as part of a significant expansion of his trade policy reform, he would impose new 25% tariffs on all steel and aluminium imports into the United States on Monday. These tariffs would be in addition to the current metal penalties.
Additionally, Trump stated that on Tuesday or Wednesday he will declare reciprocal tariffs that will apply to all nations and equal the tariff rates imposed by each nation, with an almost instantaneous implementation date. The physical market is experiencing a disruption due to the possibility of gold becoming entangled in the tit-for-tat tariffs,” stated Daniel Hynes, senior commodity analyst at ANZ bank.
The uncertainty surrounding the impact of Trump’s proposals on economic development and persistently high prices was highlighted by Federal Reserve policymakers on Friday, highlighting their no-rush approach to rate cuts as US job market remains solid.
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