Gold prices hovered around $3,350 per ounce on Monday, near a three-week high, supported by demand for safe-haven assets following President Donald Trump’s announcement of new tariffs. In letters to the EU and Mexico, Trump set a 30% tariff on both, citing their trade deficits with the US as a “major threat” to national security. Both the EU and Mexico described the tariffs unfair and disruptive, while the EU said it would extend its suspension of countermeasures to US tariffs until early August and continue to push for a negotiated settlement. The move follows a broader set of tariff hikes unveiled last week, targeting over 20 countries—including Japan, South Korea, Canada, and Brazil—as well as a 50% duty on copper imports. The new measures are set to take effect on August 1. Meanwhile, investors are closely watching key US economic reports this week—including CPI, PPI, industrial production, and retail sales—for clearer signals on the Federal Reserve’s next policy decision.
WTI crude oil futures rose to around $68.6 per barrel on Monday, extending Friday’s gain of more than 2% as traders braced for additional US sanctions on Russia that could tighten global oil supplies. Over the weekend, US President Donald Trump said he plans to make a “major statement” on Russia on Monday, as Washington prepares to send more American weapons to Ukraine via purchases from NATO allies. Reports also indicated that European Union envoys are close to agreeing on an 18th package of sanctions against Russia, which would include a lower price cap on Russian oil. However, price gains were tempered by concerns that US tariffs could weigh on global economic growth and curde oil demand. Trump released two tariff letters on Saturday, imposing duties of 30% on products from Mexico and the EU. These add to a growing list of countries facing updated duties starting August 1, since Trump began posting tariff letters last week.
