Gold extended its advance for a fourth consecutive session on Monday, building on last week’s gains as fresh US tariff measures and a weaker dollar boosted demand for safe haven assets.
Gold futures (GC=F) rose 1.4% to $5,153.90 a troy ounce, while spot prices rose 0.6% to $5,140.72, their highest level in three weeks at the time of writing.
The move followed an announcement by US president Donald Trump that he would impose a 10% tariff on global imports for 150 days under Section 122 of US trade law, after the US Supreme Court struck down an earlier and broader tariff regime.
The administration subsequently lifted the levy to 15%, the maximum permitted under the statute, intensifying concerns over potential retaliation and renewed strain on global supply chains.
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“The court’s tariff ruling has, aside from earning the ire of the US president, added another layer of uncertainty to global markets, with traders again turning to gold as a defensive play,” said Tim Waterer, chief market analyst at KCM Trade.
The tariff announcement weighed on risk sentiment, prompting investors to rotate into traditional havens including bullion and US treasuries. Uncertainty over the duration and scope of the measures, as well as the prospect of legal and congressional challenges, added to market volatility.
“Whether gold can claw its way back above $5,400 in the near-term may rest on how long tariff uncertainty lingers and whether the US engages in military action against Iran,” Waterer said.
Iran has indicated it is prepared to make concessions on its nuclear programme in talks with the US in exchange for sanctions relief and recognition of its right to enrich uranium, as it seeks to avert a potential US attack.
Oil prices fell about 1% on Monday as the US and Iran prepared for a third round of nuclear talks, easing fears of an escalating conflict, while fresh tariff increases from Trump added to uncertainty over global growth and fuel demand.
Brent crude (BZ=F) futures dipped 0.8% to $70.74 a barrel, while West Texas Intermediate (CL=F) lost 0.9% to $65.89 at the time of writing.
“The tariff news over the weekend has resulted in some risk aversion flows this morning, which can be viewed in the price of gold and US equity futures and this is weighing on the crude oil price,” said Tony Sycamore, analyst at IG Markets.
The tariff decision helped offset mounting concerns about a potential military confrontation between the US and Iran, which had driven Brent (BZ=F) and WTI (CL=F) prices more than 5% higher last week.