Gold and silver prices rose on Monday, with growing geopolitical uncertainty.
What’s happening: Gold and silver prices rose on Monday, with growing geopolitical uncertainty.What happened: Gold and silver started trading on Monday under pressure, with investors rotating their funds into undervalued stocks after a month of decline.
President Donald Trump’s tariff announcements and the growing rift between the US and Europe over Ukraine led investors to flock back to safe havens.
Why it matters: Gold prices surged more than 2% in February, reaching $2,858 per ounce, after US President Donald Trump began his second term with several announcements that triggered investor concer
Gold and silver prices rose.
Markets turned to safe-haven options on US tariff policies and growing geopolitical tensions after President Donald Trump stepped in to end the Russia-Ukraine war.On Friday, Trump said that the 25% tariffs previously announced on Canada and Mexico would proceed as planned and come into effect on March 4. The US also plans to levy additional tariffs on China, apart from the 10% already announced. The EU has been on tenterhooks after the Trump administration indicated that tariffs could be levied on goods from the bloc.
There has been a widening rift between the US and the EU regarding a peace deal between Russia and Ukraine. While Europe is keen on guaranteeing Ukraine’s security, the region believes Trump is siding with Russian President Vladimir Putin. After the meeting between Trump and Ukrainian President Volodymyr Zelensky at the Oval Office went south, the US President halted aid to the war-torn country.
Will gold rise again?
Weakness in the US dollar lent further support to gold prices, as a lower greenback makes metals cheaper for foreign currency holders. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell around 0.87% to 106.68 on Monday.Gold prices rose 1.73% to $2,897.70 an ounce on Monday, while silver prices spiked 2.43% to $32.26.
What to watch: Investors will continue monitoring tariff announcements by the Trump administration and their impact on global trade dynamics.