Gold prices climbed on Monday as an escalation in the Russian war in Ukraine and U.S. President Donald Trump’s recent threat to double tariffs on imported steel and aluminum drove investors to seek refuge in safe-haven bullion.
In Dubai, gold rates have seen an increase, with 24-carat gold rising by AED3.25 to reach AED399.50. Similarly, 22-carat gold has increased by AED3.00, bringing its price to AED370.00. Additionally, 21-carat gold is up by AED1.25, now priced at AED353.25, while 18-carat gold has increased by AED1.00, reaching AED302.75.
Spot gold rose 0.5 percent to $3,305.85 an ounce as of 02:04 GMT (currently above $3,314), while U.S. gold futures increased by 0.4 percent to $3,329.80 (currently above $3,337).
“With trade and geopolitical worries bubbling to the surface once again, it’s no surprise to see gold ticking higher to start the week,” reported Reuters, citing Tim Waterer, chief market analyst at KCM Trade.
“Risk assets are on the backfoot to start the week while a dip in the dollar is also keeping gold supported.” Trump stated on Friday that he intends to raise tariffs on imported steel and aluminum to 50 percent from 25 percent, prompting the European Commission to caution that Europe is prepared to retaliate.
Read more: Dubai gold prices dip AED2, global rates fall on stronger dollar
Monitoring U.S. Fed insights
Ukraine and Russia escalated hostilities ahead of their second round of peace talks in Istanbul, marked by a wave of attacks that included one of Ukraine’s most audacious strikes of the war and an overnight drone assault by Russia. The U.S. dollar index slipped 0.2 percent, making bullion more affordable for overseas buyers.
Markets are closely monitoring speeches from several U.S. Federal Reserve officials this week for insights into the monetary policy outlook, with Fed Chair Jerome Powell scheduled to speak later today. Fed Governor Christopher Waller noted that interest rate cuts remain possible later this year, even as the Trump administration’s tariff regime is likely to temporarily elevate price pressures.
Upcoming U.S.-China trade discussions
Gold, regarded as a safe-haven asset during periods of geopolitical and economic uncertainty, tends to perform well in a low-interest rate environment. Meanwhile, Trump and Chinese President Xi Jinping are expected to engage in discussions soon to resolve trade issues, including a dispute over critical minerals, according to Treasury Secretary Scott Bessent on Sunday.Â
Elsewhere, spot silver remained stable at $32.99 an ounce, platinum declined by 0.6 percent to $1,049.72, and palladium dropped 0.5 percent to $965.77.
