Gold prices have surged amid escalating U.S.-China trade tensions and growing geopolitical uncertainties, prompting investors to seek safe-haven assets.
On Monday, June 2, 2025, spot gold rose 0.8% to $3,315.68 per ounce, while U.S. gold futures climbed 0.7% to $3,338.52. This uptick follows U.S. President Donald Trump's announcement to double tariffs on imported steel and aluminum to 50%, a move that has heightened fears of a prolonged trade conflict.
The tariff escalation has also led to a decline in the U.S. dollar, making gold more attractive to foreign investors. Additionally, ongoing geopolitical tensions, including intensified hostilities in the Russia-Ukraine conflict, have further bolstered gold's appeal as a safe-haven asset.
Market participants are closely monitoring upcoming speeches from Federal Reserve officials, including Chair Jerome Powell, for insights into future monetary policy. Fed Governor Christopher Waller has indicated that interest rate cuts remain possible, despite expected inflation from the new tariffs.
In the broader market, the SPDR Gold Shares ETF (GLD) is currently trading at $303.60, reflecting investor interest in gold-backed assets. Major gold mining companies such as Newmont Corp (NEM) and AngloGold Ashanti Plc. (AU) are also experiencing market movements in response to the rising gold prices.
Sources: Reuters, Investing
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