Gold hits three-week high following Trump's new tariff announcement

Gold prices surged to a three-week high on Monday as investors sought safe-haven assets in response to US President Donald Trump’s proposal to impose 30% tariffs on goods from Mexico and the European Union. Reuters reported that the affected countries have condemned these measures as unfair and destructive.

Kelvin Wong, an analyst at OANDA, said growing uncertainty over US trade policy bolstered demand for defensive assets. Spot gold peaked at $3,374.01 per ounce, with Wong forecasting a potential rise toward the key resistance level of $3,435.

Meanwhile, market attention remains split between trade tensions and upcoming US inflation data, which could influence the Federal Reserve’s monetary policy outlook. According to Reuters, traders currently price in a 50-basis-point rate cut by December. Gold, which thrives in low-rate environments, continues to attract bids as expectations of policy easing grow.