Gold prices firmed on Monday, and hovered near a record high hit in the previous session, as investors sought refuge in the safe-haven asset after US President Donald Trump’s decision to impose fresh tariffs sparked concerns of a global trade war.
Spot gold was up 0.3% at $2,868.66 per ounce, as of 0005 GMT, after hitting a record high of $2,886.62 on Friday.
US gold futures rose 0.2% to $2,894.00.
Trump said during the weekend that he will announce new 25% tariffs on Monday on all steel and aluminum imports into the US, which would come on top of existing metals duties in another major escalation of his trade policy overhaul.
Trump also said he plans to announce reciprocal tariffs on many countries by Monday or Tuesday of next week.
“Global trade tension is still pretty much at play and could drive gold prices to $2,900 to $2,910 level in the near term,” said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.
“I don’t see any high probability of a correction yet at this juncture, unless we start to see a kind of a very strong US dollar push up.”
Gold is considered a safe investment during economic and financial turmoil, but higher interest rates reduce the non-yielding asset’s appeal.
Federal Reserve officials said on Friday that the US job market is solid and noted the lack of clarity over how Trump’s policies will affect economic growth and still-elevated inflation, underscoring their no-rush approach to interest rate cuts.
On the geopolitical front, Trump said he believed the US was making progress in its talks to end the war between Russia and Ukraine, but declined to provide details about any communications he had with Russian President Vladimir Putin.
Spot silver was steady at $31.82 per ounce and platinum fell 0.3% to $973.60.
Palladium was up 0.4% at $968.29.
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