Gold and silver prices climbed on Monday against the backdrop of geopolitical uncertainties. Gold was trading 2.27% up at $5,196.3 per ounce on Comex, while silver rallied 6.23% to $87.475 per ounce at 8:17 a.m. IST.
Precious metals are likely to build on recent gains this week, with gold and silver drawing fresh demand as investors retreat to safe-haven assets. The move follows renewed trade frictions after US President Donald Trump announced higher global tariffs, alongside escalating geopolitical tensions in the Middle East.
"Markets are awaiting the US producer price index (PPI), housing data, consumer confidence, regional Fed indicators, and the People's Bank of China's prime rate decision," Choice Broking said as per a PTI report.
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According to the brokerage, growing geopolitical strains and a fresh round of tariff increases from Washington have unsettled markets once again, reviving trade concerns and prompting investors to return to bullion for safety.
The Supreme Court of the United States ruled last week that Trump exceeded his presidential authority by invoking federal emergency powers to impose wide-ranging “reciprocal” tariffs and selective import duties across the globe, invalidating a major share of the trade measures rolled out during his second term.
Responding to the ruling, Trump said the administration would turn to other legal routes to reinstate the duties that were struck down. While the US Constitution assigns taxing powers to Congress, legislators over the years have granted the executive a limited scope to act under specific laws.
Trump said a new 10% worldwide tariff would be rolled out under Section 122, adding to existing duties, even as tariffs justified on national security grounds under Section 232 and those imposed under Section 301 were set to remain in place.
Geopolitical tensions have also intensified, with the United States Armed Forces moving significant military assets into the Middle East. Trump has warned that Iran has just 10 to 15 days to strike a deal over its nuclear programme. A large-scale US attack on Iran, already grappling with domestic instability after widespread unrest, could pull Washington into another prolonged regional conflict.
Commenting on the previous week's developments, Choice Broking said, “Gold ended the week on a strong note, breaking above USD 5,080 per ounce after a landmark Supreme Court of the United States ruling against global tariffs reignited volatility and safe-haven demand. The ruling, combined with mounting US-Iran tensions, has reintroduced a geopolitical risk premium that spurred silver's rebound."
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