Gold price rises above $5,200 on tariff uncertainty, Iran tensions

Gold prices climbed above $5,200 for the first time in nearly a month as heightened uncertainty over US trade policy unsettled global markets and drove investors towards safety of the metal.

Spot gold rose nearly 2% to $5,205.06 per ounce by 1 p.m. ET Monday, following a run of three weekly gains. Silver, too, advanced 3% to over $88 an ounce.

Gold’s recent run of gains has helped the metal to recover ground following a sudden rout at the turn of January. The advance has been underpinned by long-term factors — including heightened geopolitical tensions and investor wariness of sovereign bonds and currencies.

On Saturday, US President Donald Trump said he would impose a global tariff of 15% after the Supreme Court ruled against his use of emergency powers to levy duties, fueling additional demand for bullion.

“There are enough structural factors in favor of gold in the medium term,” said Vasu Menon, strategist at Oversea-Chinese Banking Corp. “In the short term, however, expect gold prices to be volatile after the sharp gains in recent months given still-unfolding developments with US trade policy.”

Traders are also monitoring the situation in the Middle East as the US-Iran nuclear talks enter a critical juncture this week. A further escalation, including a potential US military operation, would drive safe-haven assets like gold higher.

(With files from Bloomberg)