Gold prices rose sharply on Monday as investors reacted to U.S. President Donald Trump’s threat to double tariffs on steel and aluminum imports—from 25% to 50%—sparking concerns over a potential trade clash with Europe. The European Commission has already signaled its readiness to retaliate.
Spot gold increased by 0.6% to $3,309.89 per ounce, while U.S. gold futures also rose 0.6% to $3,333.30. The weaker U.S. dollar, which fell 0.1%, further supported gold by making it cheaper for foreign investors.
Geopolitical tensions added to the safe-haven appeal of gold. The war between Russia and Ukraine saw a dramatic escalation, including a major drone battle, a bridge bombing that impacted a passenger train in Russia, and attacks on Russian nuclear-capable bombers in Siberia.
In the monetary policy sphere, markets anticipate the U.S. Federal Reserve will begin cutting interest rates by 50 basis points starting in October.
Meanwhile, the U.S. Personal Consumption Expenditures Index—a key inflation measure—rose 2.1% in April, slightly below expectations of 2.2%.
Among other precious metals:
- Silver rose 0.2% to $33.04/oz
- Platinum slipped 0.2% to $1,054.28/oz
- Palladium held steady at $970.79/oz
