Gold hits 3-week high on safe-haven demand; silver at 13-year peak

Gold prices climbed to a three-week high on Monday, as investors rushed to safe-haven assets in response to renewed global trade tensions sparked by US President Donald Trump’s tariff threats.

Spot gold was up 0.4 per cent at $3,367.89 per ounce as of 0829 GMT, according to Reuters, hitting its highest level since June 23 earlier in the session. US gold futures rose by the same margin to $3,378.20.

Analysts say Trump’s latest move has rattled global markets, driving fresh interest in traditional hedges against uncertainty.

Trump’s new tariff salvo fuels demand for gold

Over the weekend, President Trump said he would impose a 30 per cent tariff on most imports from the European Union and Mexico starting August 1. The announcement has reignited fears of a broader trade war just as global supply chains have begun to recover. The European Union and Mexico both condemned the tariff threats as unfair and destabilising.

The EU said it would hold off on retaliatory measures until early August but vowed to keep pressing for a negotiated settlement. “Trump tariffs threats are supporting demand for safe haven assets, and gold is a main beneficiary of that,” Giovanni Staunovo, a commodities analyst at UBS, told Reuters.

Silver surges to over 13-year high

The uncertainty isn’t only boosting gold. Silver prices surged 1.5 per cent to $38.89 per ounce on Monday, their highest level since September 2011. Analysts at ANZ noted that silver’s recent rally has been “driven by speculative flows,” with the metal pushing above key technical resistance levels.

ANZ added that breaking the $35–$37 range could unleash new buying and potentially send prices toward $40. But the bank also warned that failure to hold those levels could trigger a pullback, with initial support seen around $35.

Eyes on US inflation data and Fed moves

Investors this week are also closely watching for US consumer and producer price index data, which could influence the Federal Reserve’s next moves on interest rates. Markets are currently pricing in around 50 basis points of rate cuts by the end of the year, beginning as early as October. Gold tends to benefit from lower interest rates, as they reduce the opportunity cost of holding non-yielding assets.

Precious metals rally beyond gold and silver

The risk-off sentiment spread to other precious metals. Platinum held steady at $1,398.75 per ounce, while palladium jumped 1.2 per cent to $1,229.44—the highest since late October 2024, according to Reuters. For investors, the message is clear: safe-haven demand is back in force, as markets brace for what could be another turbulent round in the global trade standoff.