Gold climbed about 1 percent to around $5,160 per ounce on Monday reaching its highest level in more than three weeks as investors sought refuge amid renewed trade and geopolitical tensions. Spot gold earlier hit its strongest level since late January, reflecting growing risk aversion among market participants.
Global Trade Tensions and Impact on Commodities
On Saturday, the United States announced an increase in global tariff rates from 10 percent to 15 percent, a move aimed at sustaining protective trade measures following a recent legal challenge to previous tariff authority. The extended tariff uncertainty has unsettled global markets and weakened the U.S. dollar, boosting the appeal of traditional safe haven assets such as gold.
Europe’s trade representatives are considering delaying ratification of planned agreements with Washington pending further clarity on the tariff outlook. At the same time, India has postponed negotiations that were intended to finalise an interim trade deal, reflecting broader concerns about the evolving trade landscape.
Meanwhile, digital assets mirrored broader market caution, with BTC prices hovering near $65,700 after a recent dip below $65,000, while ETH traded around $1900.
Heightened fears of a possible U.S. military strike on Iran, combined with stalled nuclear talks, have added to market unease. With Chinese markets reopening after an extended holiday, analysts expect trading volumes in gold and other metals to increase this week as investors reassess risk and seek defensive positions.
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