Quick overview

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Gold prices edged up slightly, continuing their recent upward trend as demand for safe havens grew due to US President Donald Trump’s cautious stance on additional trade tariffs.

 

Additionally, rumors that Trump aimed to escalate a conflict with Russia by sending offensive weapons to Ukraine increased demand for safe assets. The resilience of the dollar, which rose ahead of key consumer price index data due on Tuesday, limited gold gains.

Spot gold rose 0.2 percent to $3,361.42 an ounce, and gold futures increased 0.3 percent to $3,374 per ounce. Over the weekend, Trump announced a 30 percent tariff on Mexico and the European Union, the latest in a series of tariffs announced last week, which helped gold extend its gains from the previous week.

Major economies will have limited time to negotiate additional trade agreements with Washington after Trump’s tariffs go into effect on August 1.

Trump indicated that he would not extend the August 1 deadline. Over the past week, the US president announced tariffs against several other major economies, including a 50% tariff on copper imports, 25% duties on South Korea and Japan, and 50% tariffs on Brazil. Some analysts say gold increased because of these announcements, raising concerns about economic disruption from higher tariffs.

The bullion asset also gained from cautious sentiment regarding the Russia-Ukraine conflict, following Axios’ report on Sunday that Trump will supply offensive weapons to Ukraine to support its prolonged strife.

Trump stated over the weekend that he was disappointed in Russian President Vladimir Putin for his reluctance to implement a ceasefire.