Gold rose to a one-week high on Monday, with spot gold climbing about 2% to $3,353.29 per ounce as a mix of global uncertainties drove investors into safe-haven assets.
President Trump’s announcement to raise tariffs on imported steel and aluminum from 25% to 50% revived concerns about a widening trade war, while China rejected U.S. accusations over agreements on critical minerals. The dispute added to market unease and boosted demand for gold as a hedge against economic and geopolitical risk.
Treasury Secretary Scott Bessent said the president would soon discuss these issues with Chinese President Xi Jinping, underscoring the diplomatic effort to manage escalating tensions. Simultaneously, rising military activity between Ukraine and Russia ahead of scheduled peace talks in Istanbul increased geopolitical anxiety, further supporting safe-haven buying.
Investors typically turn to gold when uncertainty rises because it is viewed as a store of value that can protect portfolios from currency swings, trade disruptions and geopolitical shocks. The combination of fresh tariff measures, strained U.S.-China relations over strategic resources, and renewed conflict in Eastern Europe created the kind of risk-off environment that tends to lift precious metals prices.
Market participants will be watching upcoming diplomatic engagements and the progress of the Istanbul talks for signs that tensions might ease. Any indication of de-escalation could slow gold’s advance, while further deterioration in trade or geopolitical relations would likely sustain demand. For now, the metal’s jump to the one-week peak reflects investor preference for safe havens amid a cluster of economic and security concerns.