Gold (XAU/USD) is flexing its safe-haven muscles once again, with spot prices rising to $3,340.41 by mid-morning in the London session.
The metal is clawing back last week’s losses after the Israel-Iran ceasefire briefly calmed markets, but fresh jitters over looming US tariffs are back in the driver’s seat.
The countdown to 9 July, when the current 90-day tariff pause expires, is sparking uncertainty. So far, the US has clinched only a couple of trade deals, with China and the UK. Other countries face the threat of fresh tariffs as high as 50% if no agreements materialise, rattling investor confidence.
Adding to the unease, reports suggest US officials are now eyeing narrower, quicker trade deals to avoid a messy pile-up. Meanwhile, Washington’s latest threats of tariffs on Japan and hints that even countries negotiating in good faith might not escape unscathed have markets jittery.
Against this backdrop, a softer dollar helped bullion’s bid, but it’s the uncertainty over the tariff mess that’s really spooking investors into safe-haven mode.
Bearish views linger, though. HSBC analysts have warned the rally might be losing steam. They raised their 2025 gold price target to $3,215 an ounce but highlighted rising supply and weakening demand for physical gold as risks that could cap gains before the year ends.
Gold’s back on a hot streak, fuelled by trade war nerves and geopolitical tension. But once the tariff deadline passes and the headlines fade, this rally could lose steam fast. The metal’s got history of rallying on fear, then slipping back when the spotlight moves on.