Quick overview

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Investors fled to safe-haven metals as the Russian war in Ukraine escalated. US President Donald Trump threatened to impose double tariffs on imported steel and aluminum, which caused gold prices to rise on Monday.

US gold futures increased 0.4 percent to $3,324 per ounce while spot gold was up 0.5 percent at $3,306 per ounce. Unsurprisingly, the metal is higher today, with trade and geopolitical concerns surfacing again.

The European Commission warned that Europe is ready to retaliate following Trump’s announcement that he intends to raise tariffs on imported steel and aluminum to 50 percent from 25 percent.

Ukraine and Russia intensified their conflict with a series of attacks that included a Russian drone attack overnight and one of Ukraine’s most audacious attacks of the conflict ahead of their second round of peace negotiations in Istanbul.

Fed Chair Jerome Powell is scheduled to speak, and other Fed officials will be asked about monetary policy this week.

Even though the tariffs imposed by the Trump administration are expected to increase price pressures, Fed Governor Christopher Waller stated that interest rate cuts are still possible later this year. In an environment with low interest rates, gold, which is regarded as a safe-haven asset during high geopolitical and economic uncertainty, tends to flourish.

Meanwhile, Treasury Secretary Scott Bessent said Sunday that Trump and Chinese President Xi Jinping are scheduled to meet shortly to resolve trade issues, including a disagreement over rare minerals.