Gold prices extended their rally for a fourth straight session on Monday, climbing as investors reacted to fresh U.S. tariff measures and softer economic data. The move underscored bullion’s enduring role as a safe-haven asset during times of political and financial uncertainty.
Spot gold rose 0.8% to $5,145.81 an ounce at 04:45 ET (09:45 GMT), while U.S. gold futures gained 1.7% to $5,166.81 per ounce. The precious metal had already advanced more than 1% last week, supported by rising geopolitical tensions between the United States and Iran. A weaker U.S. dollar added further momentum, making gold cheaper for buyers using other currencies.
Trump’s 15% Tariff Plan
President Donald Trump announced that the U.S. would impose a 10% tariff—later increased to 15%, the maximum allowed—on global imports for 150 days under Section 122 of U.S. trade law. The decision followed a U.S. Supreme Court ruling that struck down an earlier, broader tariff regime.
The announcement unsettled markets. Investors shifted money into traditional safe havens such as gold and U.S. Treasurys. Questions about how long the tariffs will last, and whether Congress or the courts could challenge them, have increased market volatility.
At the same time, new economic data signaled slowing growth. U.S. gross domestic product expanded at an annualized rate of 1.4% in the fourth quarter, a sharp slowdown from the previous quarter. Meanwhile, the Federal Reserve’s preferred inflation gauge—the Personal Consumption Expenditures index—rose 2.9% year-on-year in December. Core inflation stood near 3.0%, still above the central bank’s 2% target.
For many investors, this mix of slower growth and stubborn inflation makes gold attractive as both protection against economic weakness and a store of value.
Russia Cuts Gold Reserves
Russia added another layer of intrigue to the market. Data from the Bank of Russia showed that the country’s central bank sold approximately 300,000 ounces of gold in January. Total reserves declined to 74.5 million ounces, marking the first monthly drop since October.
The sale came after gold prices hit record highs during the month. Even so, Russia remains one of the world’s largest official holders of bullion, and the reduction represents only a small fraction of its overall reserves.
Silver Surges, Copper Mixed
Other metals showed mixed performance:
- Silver jumped 4.9% to $86.35 per ounce.
- Platinum slipped 0.5% to $2,165.50 per ounce.
- London Metal Exchange copper rose 0.4% to $12,976.04 per ton.
- U.S. copper futures edged down 0.1% to $5.8933 per pound.
Analysts at ING noted that the Supreme Court ruling does not affect sector-specific tariffs on aluminum, steel, and copper imposed on national security grounds. While the ruling reduced immediate risks to global trade flows, lingering tariffs and potential alternative trade measures could limit further gains.
For now, gold remains at the center of investor attention, reflecting a market balancing trade tensions, slowing growth, and persistent inflation pressures.