Gold prices extended their upward momentum for a fourth consecutive session on Monday, building on last week’s rally as renewed concerns over U.S. trade tariffs and a softer U.S. dollar increased demand for safe-haven assets.
At 04:45 ET (09:45 GMT), spot gold rose 0.8% to $5,145.81 per ounce, while U.S. gold futures climbed 1.7% to $5,166.81 per ounce.
The precious metal had already gained more than 1% last week amid heightened geopolitical tensions between the United States and Iran, which encouraged investors to shift toward defensive assets.
New tariff measures unsettle markets
President Donald Trump announced late last week that global import tariffs would be introduced under Section 122 of U.S. trade law, initially at 10% before being increased to the maximum allowed level of 15% for a 150-day period. The move followed a U.S. Supreme Court decision that struck down a broader tariff framework previously implemented by the administration.
The announcement pressured risk-sensitive markets and prompted flows into traditional safe havens such as gold and U.S. government bonds. Uncertainty surrounding how long the tariffs will remain in effect, as well as potential legal and congressional challenges, contributed to heightened market volatility.
Investors also evaluated recent U.S. macroeconomic data. Gross domestic product expanded at an annualized rate of 1.4% in the fourth quarter, signaling slower economic momentum compared with earlier in the year.
Meanwhile, the Personal Consumption Expenditures price index — the Federal Reserve’s preferred measure of inflation — rose 2.9% year over year in December, with core inflation hovering around 3.0%, remaining above the central bank’s 2% target.
The combination of moderating growth and persistent inflation reinforced gold’s role both as a hedge against uncertainty and a long-term store of value.
Russia reduces gold holdings
Russia reported Friday that its central bank reduced gold reserves in January, marking the first monthly decline since October.
Data released by the Bank of Russia showed holdings falling by approximately 300,000 ounces to 74.5 million ounces after bullion prices reached record highs during the month.
Silver rises while other metals show mixed performance
Elsewhere, metals markets showed mixed movements.
Silver gained 4.9% to $86.35 per ounce, while platinum slipped 0.5% to $2,165.50 per ounce.
Copper futures on the London Metal Exchange edged 0.4% higher to $12,976.04 per ton, while U.S. copper futures dipped 0.1% to $5.8933 per pound.
ING analysts said, “The ruling does not affect sector specific tariffs imposed on national security grounds, including measures on aluminium, steel and copper products.” They added, “Still, LME metals moved higher as the decision reduced immediate risks to global trade flows and industrial demand. However, the upside may remain capped, given that some sector specific tariffs remain in place and the administration could pursue alternative trade measures.”
Leave a Reply