Jewellery is displayed at the Gold Souk market in Dubai, United Arab Emirates, March 14, 2025. REUTERS
July 14 (Reuters) – Gold rose to a three-week high on Monday, boosted by safe-haven demand after U.S. President Donald Trump threatened tariffs on the European Union and Mexico, while silver hit a more than 13-year peak.
Spot gold gained 0.4% at $3,367.89 per ounce, as of 0829 GMT, after hitting its highest level since June 23 earlier in the session.
Trump said on Saturday he would impose a 30% tariff on most imports from the EU and Mexico from August 1, adding to similar warnings for other countries.
Both the European Union and Mexico described the tariffs as unfair and disruptive, while the EU said it would extend its suspension of countermeasures to U.S. tariffs until early August and continue to press for a negotiated settlement.
“Trump tariffs threats are supporting demand for safe haven assets, and gold is a main beneficiary of that,” said UBS commodity analyst Giovanni Staunovo.
On the data front, traders await U.S. consumer price index data and the producer price index this week for cues into the Federal Reserve’s interest rate path.
Investors are currently anticipating 50 basis points worth of Fed rate cuts by the end of this year, starting in October. Gold tends to thrive in a low-rate environment.
Meanwhile, spot silver gained 1.5% to $38.89 per ounce, its highest level since September 2011.
The silver rally “is driven by speculative flows, with the metal moving above technical resistance levels,” Staunovo said.
ANZ, in a note, said that silver breaking the $35–$37 range could potentially trigger new technical buying and drive prices toward $40.
However, a failure to surpass this resistance may trigger a pullback, with initial support around $35, ANZ said.
Platinum was steady at $1,398.75. Palladium gained 1.2% to $1,229.44, the highest since late October 2024.
Reporting by Anushree Mukherjee in Bengaluru, Additional reporting by Ashitha Shivaprasad; Editing by Mrigank Dhaniwala
