Gold climbed sharply on Monday, rising above $5,160 per ounce, its highest level in over three weeks, as investors sought refuge from rising geopolitical and economic uncertainty. The move reflects a renewed appetite for safe-haven assets amid volatility in global trade and mounting tensions in the Middle East.
The uptick in bullion prices comes after U.S. President Donald Trump announced plans to raise global tariffs from 10% to 15% following the Supreme Court’s rejection of his previous “reciprocal tariffs.” While it remained unclear whether any formal documents had been signed, markets reacted swiftly to the prospect of higher trade barriers, which could dampen global growth and fuel risk aversion.
Adding to the pressure, European officials signaled a possible delay in ratifying trade agreements with the U.S., while India postponed negotiations on an interim deal with Washington. These developments heightened concerns over slower global trade and reinforced gold’s appeal as a hedge against uncertainty.
Geopolitical risks are also contributing to investor caution. Fears of a potential U.S. military strike on Iran, with nuclear talks at a stalemate, continue to support safe-haven demand. Market participants are now looking ahead to a scheduled round of negotiations in Geneva on Thursday, which could provide further direction.
The reopening of Chinese markets following a long holiday is expected to bring higher trading volumes this week, potentially amplifying price swings. Analysts warn that any escalation in geopolitical tensions or additional surprises in global trade policy could push gold even higher as investors seek protection against market turbulence.
With both trade uncertainty and geopolitical risk shaping sentiment, gold is likely to remain in focus as a barometer of investor caution and a safe harbor in a volatile global market.
