Tariff Concerns Boost Safe-Haven Demand, Gold Price Surges Significantly on Monday

BlockBeats News, June 2nd: The price of gold surged 2% on Monday, as escalating tensions between Russia and Ukraine and U.S. President Trump's renewed threat to double tariffs on imported steel and aluminum prompted investors to turn to the safe-haven asset gold. Trump announced last Friday that he plans to increase tariffs on imported steel and aluminum from 25% to 50%, leading the European Commission to warn that Europe is prepared to retaliate.

KCM Trade's Chief Market Analyst, Tim Waterer, said, "With trade and geopolitical concerns resurfacing, it's no surprise to see gold open the week on a high note." Ahead of the second round of peace talks in Istanbul, hostilities between Ukraine and Russia escalated, with both sides launching a series of attacks, including one of Ukraine's boldest strikes in the conflict and Russia's drone strikes during the night. "Risk assets opened the week lower, and the decline in the U.S. dollar also supported the price of gold," Waterer stated. (Jin10)