FX.co ★ Gold Rises on Trump’s New Tariff Threat

Gold prices experienced an increase, reaching approximately $3,310 per ounce on Monday, driven by heightened demand for safe-haven assets following President Donald Trump's latest tariff announcement. On Friday, Trump declared his intention to double existing tariffs on steel and aluminum imports, raising them from 25% to 50%, with the new rates effective from June 4. This development occurs amidst ongoing legal challenges questioning the legitimacy of some of Trump's tariff policies. Although the Court of International Trade ordered the halt of these taxes, an appeals court has permitted the legal proceedings to continue. Further contributing to market concerns, Trump accused China of violating a tariff truce established in early May—an allegation met with counterclaims from Beijing, accusing the US of misconduct. In geopolitical news, a drone attack attributed to Ukraine resulted in the destruction of more than 40 Russian planes within Russian territory. This occurred as Moscow launched missile and drone strikes on Ukraine, merely hours before the two countries were set to engage in a new series of direct talks in Istanbul.