Gold Price Surges Above $3,350 as Trump Rekindles Global Trade Tensions

Gold Price Forecast: XAU/USD Rises Above $3,350 as Trade Tensions Intensify

Fresh Trump Tariffs Spark Safe-Haven Demand

Gold (XAU/USD) climbed above $3,350 and approached $3,365 during Monday’s Asian session, as geopolitical and economic tensions reignited investor appetite for safe-haven assets. The precious metal gained steadily after former U.S. President Donald Trump announced aggressive tariff policies, heightening fears of a renewed global trade war.

Trump declared a 30% tariff on EU and Mexican goods, set to take effect on August 1, alongside a 35% duty on Canadian imports. He also floated a 15%-20% flat tariff on other trading partners and imposed a 50% duty on copper, further unsettling global markets.

Related: Latest Gold Market Insights

Federal Reserve Officials Voice Concern Over Rate Path

Chicago Fed President Austan Goolsbee suggested that rising tariff threats could delay expected interest rate cuts, as the central bank monitors inflationary pressures linked to supply chain disruptions.

Geopolitical Tensions Add to Gold’s Bullish Momentum

In addition to trade disputes, geopolitical unrest in the Middle East provided further support for gold prices. According to Reuters, an Israeli airstrike in central Gaza killed at least eight Palestinians and injured more than a dozen. While the target was reportedly a militant, a missile malfunction caused unintended casualties.

U.S. envoy to the region, Steve Witkoff, stated that he remained hopeful about ongoing ceasefire negotiations in Qatar.

Explore: How Geopolitical Risks Impact Gold Prices

Outlook: Bullish Momentum May Continue

With mounting uncertainty over global trade policy and geopolitical stability, gold’s upward trajectory could persist, especially if the Fed holds off on easing rates. Traders and investors are closely watching developments in both trade negotiations and Middle East diplomacy.