Gold Prices Experience Modest Increase Amid Global Trade Tensions
Gold prices rose slightly on Monday, bolstered by a weak dollar and safe-haven buying in response to rising fears of a global trade conflict.
In immediate transactions, gold increased by 0.1 percent to $2,912.79 per ounce by 02:43 GMT, while U.S. gold futures saw a 0.2 percent uptick to $2,919.40. The dollar index remains near a four-month low established last week, making dollar-denominated gold more affordable for international buyers.
Capital.com’s financial market analyst remarked, "There are increasing risks to growth, while American foreign policy is also a source of uncertainty, which enhances the attractiveness of gold.” The analyst further predicted that “the level of $3,000 for the ounce of gold is a target we are likely to breach soon—perhaps within the next two months at the latest.”
Concerns about a potential recession in the U.S. persist as President Donald Trump declined to forecast economic conditions amidst escalating stock market anxieties tied to tariffs on Mexico, Canada, and China related to Fentanyl.
Recent tariff announcements have created volatility in the markets, with investors expressing concerns that the Trump administration’s erratic tariff policies could lead to increased confusion rather than relief. Last Tuesday, Trump enacted a 25% tariff on imports from Mexico and Canada, as well as new tariffs on Chinese goods. Subsequently, he granted exemptions for many imports from Mexico and certain products from Canada for one month, further contributing to market uncertainty and anxiety over inflationary pressures and economic growth prospects in the U.S.
The implications of these tariffs have caused significant concern among investors, many of whom believe that such measures could hinder economic growth and contribute to rising inflation.
In related markets, silver prices fell by 0.3 percent to $32.42 per ounce, while platinum settled at $962.55, and palladium experienced a decrease of 0.4 percent, settling at $944.73.
| Precious Metal | Price per Ounce | Change |
|---|---|---|
| Gold | $2,912.79 | +0.1% |
| Gold Futures | $2,919.40 | +0.2% |
| Silver | $32.42 | -0.3% |
| Platinum | $962.55 | No change |
| Palladium | $944.73 | -0.4% |
As the global economic landscape evolves, market participants will continue to monitor developments closely, assessing both the impact of U.S. trade policies and the potential shift in investor sentiment towards precious metals as a safe-haven asset.
