Gold prices recovered above $2,870 on Monday after a pullback last week, supported by a weaker dollar and growing concerns about upcoming tariffs announced by President Trump.
The administration plans to impose a 25% tariff on imports from Canada and Mexico this week and to double existing duties on a range of Chinese goods. Those moves have intensified worries about stagflation — the harmful combination of slowing economic growth and persistent inflation — which historically drives investors toward safe-haven assets such as gold.
Recent economic data have raised the possibility that the U.S. economy could be moving in that direction, creating favorable conditions for precious metals. At the same time, rising expectations that the Federal Reserve will cut interest rates have increased the appeal of non-yielding assets like gold. Although last week’s inflation concerns initially strengthened the dollar, typically a headwind for gold, the currency weakened on Monday and allowed bullion prices to climb. Other precious metals, including silver, palladium, and platinum, also posted gains.