Gold prices surged past previous records on Monday, driven by a wave of safe-haven demand following fresh tariff threats from U.S. President Donald Trump. As global trade tensions escalate, investors are piling into the precious metal, pushing it to its seventh all-time high this year.
Spot gold climbed 1.4% to $2,900.39 per ounce, reaching a peak of $2,903.08 earlier in the session. U.S. gold futures mirrored this rally, rising 1.4% to $2,926.60. Analysts suggest that gold’s bullish momentum is likely to continue as long as geopolitical and economic uncertainties persist. Exinity Group’s chief market analyst Han Tan noted that Trump’s latest trade policies are amplifying market fears, reinforcing gold’s role as a safe-haven asset.
On Sunday, Trump announced an additional 25% tariff on all steel and aluminium imports, with further reciprocal tariffs expected to follow. The move has heightened concerns about the potential fallout from a global trade war, prompting investors to seek refuge in gold. Traditionally, gold shines in times of financial instability, though rising interest rates can dampen its appeal by increasing the opportunity cost of holding the non-yielding asset.
This week, all eyes will be on key inflation data, with the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) set for release. These figures could shape expectations for the Federal Reserve’s interest rate policy. A higher-than-anticipated CPI print may delay anticipated rate cuts, which could trigger short-term profit-taking in gold, according to Tan. Meanwhile, Federal Reserve Governor Adriana Kugler suggested that keeping rates steady remains a prudent approach given current economic conditions, including stable inflation and a robust labour market.
Beyond gold, silver prices also experienced a strong rally, climbing 1.4% to $32.25 per ounce after reaching a three-month high last week. Platinum rose 0.6% to $982.35, while palladium gained 0.8% to $972.00. In a notable shift, gold reserves in London vaults declined 1.7% in January, with shipments increasing to the United States, according to the London Bullion Market Association.
As economic uncertainty continues to dominate market sentiment, gold remains a key asset for investors seeking stability in turbulent times.
London-listed company KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
