Gold Prices Rise Amidst Geopolitical Tensions and Economic Concerns
Gold prices experienced an uptick on Monday following a record-setting peak last week. This increase is attributed to ongoing geopolitical tensions and rising anxiety over customs duties, which have intensified commercial frictions. Additionally, there are heightened expectations for a reduction in interest rates by the Federal Reserve to stimulate demand for safe-haven assets.
As of 03:07 GMT, the price of gold in spot transactions rose by 0.1% to $2,986.53 per ounce. Notably, the price of gold surpassed the $3,000 threshold on Friday, reaching an all-time high of $3,004.86.
In the gold futures market, prices experienced a slight decline, dropping 0.2% to $2,994.60.
Concerns regarding the U.S. economy were echoed by Treasury Secretary Scott Besten on Sunday, who stated there are "no guarantees" against stagnation despite the potential for adjustments in economic policy. March witnessed a decline in American consumer confidence, hitting its lowest point in approximately two and a half years, while inflation expectations increased amidst fears that comprehensive customs duties initiated by President Trump—triggering a trade war—could elevate prices and adversely impact the economy.
Geopolitical tensions remain intense, with the U.S. committing to continued military operations against Houthi forces in Yemen to thwart their assaults on maritime vessels.
Gold, traditionally viewed as a hedge against political risks and inflation, has enjoyed a robust increase of 14% year-to-date in 2025.
In related commodities, silver prices in spot transactions dipped 0.1% to $33.76 per ounce, while platinum saw a modest increase of 0.1% to $994.50. Palladium, however, fell by 0.1% to $963.83.
Market Overview of Precious Metals
| Commodity | Spot Price ($/ounce) | Change (%) |
|---|---|---|
| Gold | $2,986.53 | +0.1 |
| Silver | $33.76 | -0.1 |
| Platinum | $994.50 | +0.1 |
| Palladium | $963.83 | -0.1 |
This market summary underscores the significant movements in the precious metal sector, reflective of broader economic indicators and geopolitical developments.
