Gold prices climbed sharply on Monday morning, rising by over 2% as escalating geopolitical tensions and renewed tariff threats by U.S. President Donald Trump fueled demand for the precious metal as a safe-haven asset.
As of 9:57 a.m. Nigerian time, spot gold rose from $3,287.93 to $3,353.69 per ounce, marking a substantial increase in response to global uncertainty.
The fragile truce between the U.S. and China appears to be under strain, with both sides accusing each other of reneging on commitments made in their recent agreement.
This heightened uncertainty in global trade has strengthened gold’s appeal among investors seeking stability.
Adding to market concerns, Trump announced plans to double import tariffs on foreign steel and aluminum to 50%, a move that has prompted Canada to issue retaliation warnings.
The U.S. dollar weakened on Monday, further boosting gold’s attractiveness for buyers using other currencies.
According to Bloomberg, gold prices were further propelled by Kyiv’s drone strikes across Russia on Sunday, targeting airfields as far east as Siberia.
In response, Moscow launched one of its longest assaults against Kyiv, intensifying the geopolitical uncertainty ahead of crucial peace talks later this week.
The renewed conflict and market turbulence are restoring gold’s safe-haven appeal, which had somewhat diminished following its record-breaking surge above $3,500 per ounce in April.
Despite recent price fluctuations, gold remains one of the strongest-performing commodities in 2025, with year-to-date gains exceeding 25%.
Analysts at Goldman Sachs Group Inc. reaffirmed last week that gold continues to be a key inflation hedge in long-term investment portfolios, alongside oil.
As geopolitical risks and economic uncertainties persist, gold is expected to remain a critical asset for investors seeking stability amid fluctuating market conditions.
Last week, gold fell after a federal court ruling on President Donald Trump’s trade tariffs led to a rally in risk-on assets.
The court allowed 10 days for compliance with the ruling, prompting the White House to immediately file an appeal.