Yahoo Finance UK’s Pedro Goncalves writes:
Gold prices soared to a record high as investors flocked to the precious metal for a safe haven as all-out trade war looms.
The spot price of gold jumped 1.2%, reaching $2,895.60 per ounce, while gold futures rose 1.17% to $2,921.40.
“Gold remains in a sweet spot, with little standing in its way,” Westpac Banking Corp. analyst Richard Franulovich said in a note.
“An intrinsically unpredictable and disruptive Trump, hurtling tariff threats at allies and adversaries alike, alongside the threats of 100% tariffs on the BRICs if they diversify away from the dollar, all point to a lift in gold’s safe haven appeal.”
The yellow metal has now gained 10% so far in 2025, building on its 26% rise in 2024.
Kathleen Brooks, research director at XTB, said: “Interestingly, Trump announced his latest tariffs late on Sunday, which suggests that he is not too worried about the market reaction.
“Typically, Trump has announced tariffs earlier in the weekend, as if he was watching the reaction and to give himself time to back track before stocks or risk assets sold off too sharply. This may suggest that Trump is determined to impose tariffs on these industrial metals.
“These tariffs are targeting specific products, rather than individual countries, which makes it hard for any negotiations to take place. We think that this move could boost the gold price, as it may lead to a further flurry of demand to bring gold on shore to the US, in case Trump imposes tariffs on precious metals.
“The question for investors is whether gold will reach the psychologically significant $3,000 level on the back of ever-growing tariff levies. So far, the gold price is higher by $25 early on Monday.”
