Trump’s tariff threats see investors rushing to buy gold

Gold prices continued their record-breaking rally on Monday, breaching the key $2,900 level for the first time.

According to a Reuters report, this latest surge has been fuelled by demands for a safe haven as new tariff threats amplify the trade war and concern about inflation intensifies. 

Spot gold jumped 1.6% to $2,905.24 per ounce by 1.45pm Eastern Time (18:45 GMT), having earlier hit a record high of $2,911.30.  US gold futures closed 1.6% higher at $2,934.40.

“The tariff war is clearly behind this rise; it simply reflects increased uncertainty and tension in the global trade situation,” said Edward Meir, an analyst at Marex.

New tariffs were announced on Sunday, including an additional 25% tariff on all steel and aluminium imports, with President Trump signing the Executive Order to this effect on Monday.

It was also stated that reciprocal tariffs would be announced this week, matching rates imposed by other countries and applying them immediately.
 

These tariffs could worsen US inflation, with investors awaiting US Consumer Price Index (CPI) and Producer Price Index (PPI) data later in the week.

Weaker than expected CPI and PPI data may weigh on the dollar and boost gold prices, while stronger figures could push up US yields and put some pressure on gold, although the market's resilience and buying interest during dips should limit this, Meir suggested.

Federal Reserve Chair Jerome Powell is also scheduled to testify before Congress on Tuesday and Wednesday.
Bullion has now reached its seventh record high this year, driven by tariff threats, which have fuelled uncertainty about global growth, trade wars, and high inflation. This has prompted investors to seek gold as a safe haven asset.

Phillip Streible, chief market strategist at Blue Line Futures, noted gold’s 45-degree rally since December, suggesting this could create a self-fulfilling prophecy of further price increases, potentially leading to a forecast revision to around $3,250 or $3,500.

Spot silver rose 0.8% to $32.05 per ounce, having hit a three-month high on Friday.

Platinum added 1.5% to $990.74, and palladium gained 2.1% to $985.40.
 

Gold prices in Thailand have also followed the global market trend. This morning, the Gold Traders Association reported that prices have surged by 850 baht compared to yesterday's closing price.

The selling price of gold jewellery is currently 47,950 baht, according to the latest data from the association's website, published at 9:17 AM.

Gold bars: The domestic buying price is 47,350 baht per baht, and the selling price is 47,450 baht per baht, according to the second announcement.

96.5% gold jewellery: The buying price is 46,495.72 baht per baht, and the selling price is 47,950 baht per baht.