Gold prices surged to near-record levels in the international market on Monday, as investors flocked to the precious metal following U.S. President Donald Trump’s announcement of new tariffs on steel and aluminum imports. Spot gold was trading at $2,875.79 per ounce, up 0.5%, a day after reaching a record high of $2,886.62. Meanwhile, U.S. gold futures rose 0.5% to $2,902.40.
Trump’s statement on Sunday regarding the imposition of a 25% tariff on all steel and aluminum imports into the U.S. added to the uncertainty surrounding global trade. These tariffs will supplement the existing metal tariffs, marking a significant escalation of his trade policy. Trump also announced plans to introduce reciprocal tariffs on other nations, which will be revealed later this week and implemented almost immediately, corresponding to the tariff rates set by each country.
Kelvin Wong, Senior Market Analyst for Asia Pacific at OANDA, commented on the market’s reaction, stating that global trade tensions could push gold prices to the $2,900 to $2,910 range in the near term. He added, “I don’t see any high probability of a correction yet at this juncture unless we start to see a very strong U.S. dollar push-up.”
In the domestic market, gold prices also reached a record high of Rs 85,470 per 10 grams. The price of gold has risen 8.62% over the past month and 37% over the past year, significantly outperforming the Nifty 50 benchmark equity index.
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