Gold prices rose over 1% to above $3,340 per ounce on Monday as investors sought the safe-haven asset amid new tariff threat from US President Donald Trump and an escalation of the Russia-Ukraine war. Trump said on Friday he will double existing tariffs on steel and aluminum imports from 25% to 50%, effective June 4. The announcement comes amid an ongoing legal battle over the legality of some of Trump's tariff policies, which an appeals court has allowed to continue after the Court of International Trade ordered the administration to halt the taxes. Adding to market unease, Trump accused China of violating a tariff truce reached in early May, a claim Beijing countered with its own accusations of US wrongdoing. Meanwhile, a Ukrainian drone attack has destroyed over 40 Russian planes within Russian territory, while Moscow pounded Ukraine with missiles and drones—just one day before the two sides meet for a new round of direct talks in Istanbul.
Silver prices eased toward $33 per ounce on Friday, pulling back from recent highs as investors turned cautious ahead of the release of the US PCE price index report, which could influence the Federal Reserve’s interest rate plans. San Francisco Fed President Mary Daly reiterated that while the Fed could still cut rates twice this year, it remains prudent to hold steady for now to ensure inflation continues its path toward the 2% target. On the trade front, sentiment was weighed down after a US appeals court reinstated President Donald Trump’s reciprocal tariffs, reversing a previous lower court ruling. Additionally, Treasury Secretary Scott Bessent acknowledged that US-China trade talks are "a bit stalled," hinting that a breakthrough may now require direct engagement between the countries’ leaders.
