Gold prices climb on softer US dollar, Trump's fresh tariff threat
[BENGALURU] Gold prices climbed on Monday (Jun 2)as US President Donald Trump threatened to double tariffs on imported steel and aluminium, while a weaker US dollar also supported greenback-priced bullion.
Spot gold was up 0.6 per cent at US$3,309.89 an ounce, as at 0056 GMT. US gold futures also climbed 0.6 per cent to US$3,333.30.
The US dollar index edged 0.1 per cent lower, making bullion less expensive for overseas buyers.
Trump said on Friday that he plans to raise tariffs on imported steel and aluminium to 50 per cent from 25 per cent, prompting the European Commission to warn that Europe is prepared to retaliate.
Geopolitical tensions escalated as Ukraine and Russia sharply ramped up the war with one of the biggest drone battles of their conflict, a Russian highway bridge blown up over a passenger train and an ambitious attack on nuclear-capable bombers deep in Siberia.
Gold is considered as a safe-haven asset during geopolitical and economic uncertainty.
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Meanwhile, Trump and Chinese President Xi Jinping are expected to speak soon to iron out trade issues including a dispute over critical minerals, according to Treasury Secretary Scott Bessent on Sunday.
On Friday, the US Personal Consumption Expenditures Price index saw a year-on-year increase of 2.1 per cent in April, versus a 2.2 per cent forecast.
Investors now see a 50-basis-point rate cut by the US Federal Reserve this year, starting in October.
Fed governor Christopher Waller said that interest rate cuts remain possible later this year even as the Trump administration's tariff regime is likely to push up price pressures temporarily.
Elsewhere, spot silver rose 0.2 per cent to US$33.04 an ounce, platinum was down 0.2 per cent at US$1,054.28 and palladium was steady at US$970.79. REUTERS
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