(Bloomberg) -- Gold rose toward a record after President Donald Trump said he would announce duties on steel and aluminum imports on Monday, adding to increasing uncertainty in global financial markets.
Most Read from Bloomberg
Bullion traded near $2,879 an ounce — after advancing 2.2% last week — as the president’s latest trade threats helped boost demand for haven assets. Trump said on Sunday that 25% levies will apply to steel and aluminum from all countries, but did not specify when they would go into effect.
“Gold remains in a sweet spot, with little standing in its way,” Westpac Banking Corp. analyst Richard Franulovich said in a note. “An intrinsically unpredictable and disruptive Trump, hurtling tariff threats at allies and adversaries alike, alongside the threats of 100% tariffs on the BRICs if they diversify away from the dollar, all point to a lift in gold’s safe haven appeal.”
Traders will also focus on Federal Reserve Chair Jerome Powell’s semi-annual testimony to lawmakers on Tuesday and Wednesday for clues about the path forward for US monetary policy. Powell is likely to highlight the resilient economy as a key reason central bankers are in no rush to further cut borrowing costs — a scenario that in theory would be bearish for bullion as it pays no interest.
Still, the metal’s role as a store of value in uncertain times continues to drive investor appetite, with markets trying to get a read on the potential implications for the US economy and monetary policy if the new administration’s policies on trade and immigration reignite inflation and impact growth.
China’s central bank expanded its gold reserves for a third month in January, signaling ongoing commitment to diversify reserves even with prices at historically high levels.
Spot gold rose 0.6% to $2,877.99 an ounce as of 1:38 p.m. in Singapore, after touching an all-time high of $2,886.79 on Friday. The Bloomberg Dollar Spot Index was up 0.2%. Silver and platinum advanced, while palladium declined.
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.