The ounce approaches $3370 after Trump's tariffs on the EU and Mexico

SadaNews - Gold prices rose supported by safe haven demand, as traders continued to assess the new tariff threats from U.S. President Donald Trump, after he announced a 30% tariff on the European Union and Mexico, set to take effect next month.

Gold bullion traded near $3370 per ounce, after a 0.6% gain during the past week. At the same time, America's trading partners continued to navigate the final weeks of negotiations, while Trump’s patience with these talks seemed to be running thin ahead of the August 1 deadline.

On Saturday, the U.S. President issued trade warnings to Mexico’s President Claudia Sheinbaum and European Commission President Ursula von der Leyen, in the latest series of messages he sent last week to economies including Canada and Brazil, outlining the levels of new tariffs.

Trump's trade policies bolster gold's standing

The escalating trade tensions have increased the appeal of gold as a safe haven, although some investors have become less convinced of the likelihood of widespread disruptions, after Trump previously backed down from some of his severe tariff threats.

Gold has risen more than 25% since the beginning of the year, reaching a record level above $3500 per ounce in April.

Trump's trade policies have been a constant source of uncertainty in the markets, prompting investors to seek safety in the precious metal amid fears of long-term impacts on the global economy. Additionally, rising geopolitical tensions and purchases by central banks have helped to enhance gains.

The spot gold price rose by 0.5% to reach $3372.75 per ounce at 7:13 AM Singapore time, while the Bloomberg Dollar Spot Index increased by 0.1%. Silver prices climbed to trade near the highest level since 2011, while prices for platinum and palladium fell.