Gold Prices Jump Over 1% as Dollar Weakens and Trump Tariff Threats Spur Safe-Haven Demand – Business

Gold prices surged over 1% on Monday, reaching $3,247.40 per ounce, as the U.S. dollar weakened and renewed trade tensions fueled safe-haven demand. U.S. gold futures also rose, gaining 2% to $3,251.90. The rally follows a significant correction last week, where gold posted its worst weekly performance since November .

The dollar slipped 0.3% on Monday, making gold more affordable for holders of other currencies. Treasury Secretary Scott Bessent reaffirmed President Trump’s tariff threats, stating that tariffs would be imposed on trade partners not negotiating in “good faith.” This announcement reignited concerns over global trade tensions and their potential impact on financial markets .

Reuters

Gold, traditionally considered a safe-haven asset during periods of political and economic uncertainty, tends to perform well in a low-interest-rate environment. Markets are anticipating 54 basis points of rate cuts this year, with reductions expected to begin in October. Spot silver rose 0.8% to $32.52 per ounce, platinum increased 0.6% to $993.70, and palladium gained 0.7% to $966.98.

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