Gold prices surged to near-record levels on Monday, driven by heightened demand for the precious metal after U.S. President Donald Trump announced plans to impose new tariffs on steel and aluminum imports. Investors flocked to gold as a safe-haven asset amid escalating trade tensions, pushing prices close to all-time highs.
Gold Prices Rise on Tariff Announcement
Spot gold traded at $2,875.79 per ounce, marking a 0.5% increase, just a day after hitting an all-time high of $2,886.62. U.S. gold futures also saw a 0.5% rise, reaching $2,902.40 per ounce. The move comes after Trump revealed plans on Sunday to introduce a 25% tariff on all steel and aluminum imports into the United States, marking a significant escalation of his trade policies.
Trump also indicated that he would announce reciprocal tariffs on Tuesday or Wednesday, targeting all nations with tariffs matching the rates imposed by those countries on U.S. imports. This further intensified concerns over global trade tensions, which have been weighing heavily on markets.
Experts Predict Gold Prices Could Rise Further
Kelvin Wong, a senior market analyst at OANDA for the Asia Pacific region, noted that the ongoing trade uncertainties could push gold prices even higher. “Global trade tension is still pretty much at play and could drive gold prices to the $2,900 to $2,910 level in the near term,” Wong said in an interview with Reuters. He also indicated that there was little chance of a price correction unless the U.S. dollar saw a significant surge.
Gold Prices Hit Record High in Domestic Markets
In the domestic market, gold also reached new heights. The price of gold hit Rs 85,470 per 10 grams, marking a significant rise. Over the past month, the price of gold has increased by 8.62%, and it has gained 37% over the past year, significantly outperforming the Nifty 50 index, India’s benchmark stock market index.
As tensions rise over trade policies, investors are continuing to seek the safety of gold, with many anticipating further gains in the coming weeks.
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