Gold edged up modestly in Asian trading on Monday, continuing its recent upward trend as escalating trade tensions and geopolitical uncertainty drove investors toward safe-haven assets.
Market sentiment was rattled by fresh tariff announcements from U.S. President Donald Trump, who over the weekend confirmed a new round of import duties targeting Mexico and the European Union, fueling fears of a broader trade standoff. Meanwhile, news of Trump’s intention to send offensive weaponry to Ukraine added to global unease, potentially worsening relations with Russia.
Despite the supportive backdrop for gold, gains were restrained by a firmer U.S. dollar ahead of a closely watched inflation report due Tuesday. Silver, however, stood out with a notable surge, reaching its highest level in nearly 14 years.
As of 00:40 ET (04:40 GMT), spot gold was up 0.2% to $3,361.42 per ounce, while gold futures gained 0.3% to $3,374.80. Silver futures rallied 1.4% to $39.493, marking their strongest level since 2011.
Gold Holds Gains as Tariff Spree Sparks Economic Worries
Gold extended last week’s gains after Trump unveiled a sweeping 30% tariff on imports from Mexico and the EU, escalating a series of trade restrictions that now include major economies like Japan, South Korea, Brazil, and copper exporters. The new duties are set to take effect on August 1, leaving minimal room for renegotiation.
The widening tariff war raised concerns over global economic stability, prompting investors to seek shelter in gold and other precious metals. Geopolitical jitters also remained high following reports that Trump plans to increase military support to Ukraine — a move that could aggravate tensions with Moscow. Over the weekend, Trump criticized Russian President Vladimir Putin for stalling ceasefire negotiations.
Although gold maintained an upward bias, analysts noted that the precious metal has already posted significant gains in 2025, limiting further upside in the near term. However, silver and platinum continued to shine, with platinum futures at $1,461.40, holding near decade highs despite a 0.6% dip.
Mixed Signals for Metals as Dollar Strength Offsets Gains
In the industrial metals space, copper prices showed mixed performance. London Metal Exchange copper futures climbed 0.3% to $9,694.45 per metric ton, supported by encouraging trade data out of China — the world’s largest copper consumer — which showed a rebound in red metal imports for June.
However, U.S. copper futures slipped 0.5% to $5.5783 per pound, as traders locked in profits following a record-breaking rally spurred by tariff-driven price jumps.
A stronger U.S. dollar capped gains across metal markets. The greenback rose 0.1% in Asian trading, recovering further from recent multi-year lows.
Investors now await the U.S. Consumer Price Index (CPI) data due Tuesday. The figures are expected to show an uptick in inflation, potentially linked to the recent surge in tariffs. Sticky inflation could prompt the Federal Reserve to keep interest rates unchanged — a stance President Trump has openly challenged, calling for immediate cuts.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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