Gold prices ticked upward in Asian trading on Monday, supported by safe-haven demand amid growing uncertainty around upcoming U.S. trade tariffs and political volatility in Japan following recent elections.
Over the weekend, Japan’s upper house elections saw the ruling Liberal Democratic Party lose its majority, raising questions about the future direction of the country’s leadership. The yen strengthened after the vote results, a signal of increased risk aversion among investors.
Meanwhile, a slight retreat in the U.S. dollar, after a sustained two-week climb, lent additional support to the precious metals market. Still, gold continues to trade within a narrow $200 range it has maintained since April.
Other precious metals, particularly platinum and silver, extended their strong run, driven by expectations of tightening supply conditions and improving demand outlooks.
Spot gold rose 0.4% to $3,364.21 an ounce, while September gold futures also gained 0.4% to $3,371.42 by 01:20 ET (05:20 GMT).
Trade Tensions Reinforce Gold’s Safe-Haven Appeal
Sunday reporting by the Wall Street Journal added fresh momentum to gold’s rise, revealing that the European Union is preparing countermeasures in response to the U.S.’s planned tariffs under President Donald Trump’s administration.
The article noted that EU negotiators were caught off guard by Washington’s push for greater concessions, including a proposed minimum tariff of 15%. With Trump’s August 1 tariff deadline looming, anxiety over global trade policy remains high.
U.S. Commerce Secretary Howard Lutnick reaffirmed on Sunday that the August 1 date is final, with new tariffs potentially reaching up to 50% on certain imports from major economies.
Political Uncertainty in Japan Adds to Market Caution
Gold also found support amid political turbulence in Japan, where the ruling LDP, led by Prime Minister Shigeru Ishiba, lost its upper house majority. The defeat clouds the outlook for ongoing U.S.-Japan trade talks and complicates Japan’s economic reform agenda. Investors responded by turning to traditional safe-haven assets.
Platinum and Silver Extend Strong Gains
Across the broader metals complex, prices were mostly higher as the U.S. dollar softened slightly.
Spot platinum rose 1% to $1,439.59 per ounce, while spot silver increased 0.3% to $38.3045. Both metals have posted stronger gains than gold so far in 2025, with platinum up 29.2% and silver surging 53.5%, compared to gold’s 28.4% year-to-date rise.
Platinum remained close to its highest level in over a decade, and silver hovered near a 14-year peak—supported by bargain hunting and an improving fundamental backdrop.
Copper Sees Modest Uptick
Among industrial metals, copper prices also moved higher. London Metal Exchange copper futures climbed 0.6% to $9,846.45 a ton, while COMEX copper added 0.2% to $5.6170 a pound.
The moves in copper reflect continued optimism about global infrastructure investment and cautious optimism around global trade negotiations—despite persistent geopolitical risks.
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