Gold experiences an uptick as the dollar declines, while Trump’s tariff threats bolster demand for safe-haven assets. Gold prices experienced an increase of more than 1% on Monday, driven by a decline in the dollar and a resurgence of trade tensions, following U.S. Treasury Secretary Scott Bessent’s restatement of President Trump’s tariff threats. Spot gold attained a value of $3,247.40 per ounce, whereas U.S. gold futures reached $3,251.90.

As of 0030 GMT, spot gold experienced an increase of 1.4%, reaching a price of $3,247.40 per ounce. U.S. gold futures experienced an increase of 2%, reaching a value of $3,251.90. * On Friday, gold declined by over 2% and recorded its poorest weekly performance since November, influenced by heightened risk appetite stemming from the U.S.-China trade agreement. The dollar experienced a decline of 0.3% on Monday, resulting in a reduction of costs for gold priced in dollars for holders of foreign currencies.

Trump will impose tariffs at the rate he threatened last month on trade partners that do not negotiate in “good faith” on deals, Treasury Secretary Scott Bessent stated during television interviews on Sunday. Trump’s ongoing trade wars have significantly disrupted global trade flows and unsettled financial markets as investors contend with what Bessent has termed the Republican president’s “strategic uncertainty,” in his efforts to redefine economic relationships to benefit the U.S.

In April, U.S. producer prices experienced an unexpected decline, and the growth of retail sales decelerated, while consumer prices increased at a rate that was below expectations, according to the data. Markets anticipate 54 basis points of rate cuts this year, with the reductions now projected to commence in October.

Gold, traditionally viewed as a safe-haven asset amid political and economic uncertainty, generally performs well in a low-rate environment. Spot silver increased by 0.8% to $32.52 an ounce, platinum advanced by 0.6% to $993.70, and palladium appreciated by 0.7% to $966.98.