Gold prices crept higher during Asian trading hours on Monday, extending recent gains as renewed global trade tensions and rising geopolitical instability pushed investors toward traditional safe-haven assets.
Investor nerves were rattled after U.S. President Donald Trump announced a fresh wave of tariffs over the weekend, this time targeting goods from Mexico and the European Union. The move added to an already widening trade dispute that includes levies on imports from countries such as Japan, Brazil, and South Korea. Trump also confirmed plans to supply advanced weapon systems to Ukraine — a decision that could further inflame already strained relations with Moscow.
Despite the supportive macro environment, gold’s rally was tempered by strength in the U.S. dollar ahead of key inflation data due Tuesday. Silver, meanwhile, outshone gold with a sharp breakout to multi-year highs.
By 00:40 ET (04:40 GMT), spot gold had edged up 0.2% to $3,361.42 per ounce, while futures for August delivery added 0.3% to reach $3,374.80. Silver futures surged 1.4%, trading at $39.493 — their highest since 2011.
Gold Retains Momentum as Trade Frictions Deepen
Gold prices continued to benefit from growing concern over global economic stability, particularly after Trump rolled out a sweeping 30% tariff set to hit Mexican and EU imports starting August 1. The move follows earlier tariff hikes on copper and a wide range of goods from major trading partners, contributing to fears of a prolonged trade standoff.
With diplomatic uncertainty intensifying — especially around U.S.-Russia relations — investors rotated into gold and other precious metals as a hedge against volatility. Trump’s public rebuke of Russian President Vladimir Putin over stalled ceasefire talks added to market unease.
Still, analysts cautioned that much of gold’s bullish case may already be priced in after a strong run in 2025, suggesting limited room for additional upside unless fresh catalysts emerge. Silver and platinum, however, continued to impress. Platinum futures hovered near decade highs at $1,461.40 despite a slight 0.6% dip.
Copper Faces Pressure from Dollar Strength, Despite China Boost
Industrial metals saw mixed results, with copper prices showing divergent moves across markets. Futures on the London Metal Exchange rose 0.3% to $9,694.45 per metric ton, buoyed by better-than-expected trade data from China — the world’s top copper importer — which showed a notable uptick in June copper purchases.
However, U.S. copper contracts retreated 0.5% to $5.5783 per pound as traders took profits after a dramatic rally, largely fueled by recent tariff news and supply concerns.
Gains across the broader metals complex were capped by a firmer U.S. dollar, which edged up 0.1% during Asian hours, extending its recovery from recent lows.
Looking ahead, markets are focused on Tuesday’s release of the U.S. Consumer Price Index (CPI). Analysts expect the data to show inflation picking up again, potentially due to the latest tariff hikes. Persistently high inflation may lead the Federal Reserve to maintain current interest rates — a stance President Trump has recently criticized, calling for immediate cuts to support growth.
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