Inki Cho

Gold prices rose on Monday, bolstered by renewed trade tensions and escalating geopolitical risks. President Trump announced plans to double tariffs on steel and aluminum imports to 50% starting June 4, a decision that comes amid ongoing legal disputes over current tariffs. Markets responded cautiously, seeking shelter in traditional hedges like gold. Further uncertainty emerged after Trump accused China of violating a recent trade truce, prompting a sharp exchange of claims between the two governments.

Geopolitical developments also contributed to the metal’s upward momentum. In Eastern Europe, tensions continue to mount despite the upcoming peace talks in Istanbul, following reciprocal strikes. In the Middle East, the situation remains volatile. While Washington indicated progress toward a potential ceasefire between two parties in the region, continued hostilities have reinforced demand for safe-haven assets like gold.

Investors could turn to new economic data releases to gauge the state of the US economy. PMI and job market data releases this week could affect expectations and fuel volatility in the gold market. Weaker-than-expected data could push the metal to the upside as markets remain concerned about the impact of tariffs on the economy.

Cho is Financial Markets Strategist Consultant to Exness