According to Odaily, gold prices surged by 2% on Monday as investors sought safe-haven assets amid escalating tensions between Russia and Ukraine and U.S. President Donald Trump's renewed threats to double tariffs on imported steel and aluminum. Last Friday, Trump announced plans to increase tariffs on these imports from 25% to 50%, prompting a warning from the European Commission about potential retaliatory measures from Europe.
Tim Waterer, Chief Market Analyst at KCM Trade, noted that the rise in gold prices at the start of the week was expected due to resurfacing trade and geopolitical concerns. The conflict between Ukraine and Russia intensified ahead of the second round of peace talks in Istanbul, with both sides launching a series of attacks, including one of Ukraine's boldest strikes in the conflict and a nighttime drone attack by Russia.
"Risk assets opened lower this week, and the decline in the dollar also supported gold prices," Waterer added.