Gold prices remained elevated above the $3,200 mark on Monday, as renewed friction between the United States and China sparked safe-haven demand and added fresh uncertainty to global markets. Investors are increasingly turning to precious metals amid geopolitical instability and ongoing concerns about the global economic outlook.
The latest boost in prices comes after Washington signaled potential tariff increases on Chinese goods, citing national security concerns and alleged unfair trade practices. In response, Beijing warned of retaliatory measures, rekindling fears of a broader trade dispute reminiscent of the 2018–2019 standoff. Gold, widely seen as a hedge against both inflation and geopolitical risk, has benefited from the flight to safety.
Spot gold traded near $3,215 per ounce in afternoon trading, holding on to gains made late last week. Analysts say the metal is finding strong support from a combination of trade anxiety, a weaker U.S. dollar, and expectations that the Federal Reserve may adopt a more cautious tone in upcoming meetings.
“The market is on edge,” said a commodities strategist at a major investment firm. “With tensions between the world’s two largest economies heating up again, gold is acting exactly as it should—as a refuge in times of uncertainty.”
Meanwhile, U.S. Treasury yields have retreated slightly, and equity markets showed signs of volatility, further reinforcing the bid for non-yielding assets like gold. The metal has now risen more than 12% year-to-date, fueled by geopolitical headlines, dovish central bank expectations, and steady demand from central banks and institutional investors.
Looking ahead, traders are watching for key U.S. inflation data and any official updates on the trade situation. A sustained escalation in rhetoric or action between Washington and Beijing could drive gold even higher, analysts suggest, especially if it coincides with signs of economic slowing or monetary policy hesitation.
