Gold prices rise due to safe-haven demand
Gold prices rose slightly on Monday, driven by worries about new tariffs from U.S. President Donald Trump and potential interest rate cuts from the Federal Reserve. Gold futures increased to $3,030.70. Last week, gold reached a record high due to fears surrounding trade tensions. As of early Monday, spot gold was up 0.1% at $3,025.12 per ounce. U.S. gold futures saw a 0.3% rise. Gold's strength is often seen during times of political and economic uncertainty, making it a safe-haven investment. The focus on tariffs is growing as Trump prepares to implement reciprocal tariffs on April 2. This could increase inflation and slow economic growth. The Federal Reserve recently kept its benchmark interest rate steady but is expected to cut rates twice before the end of the year. Despite this, New York Fed President John Williams stated that the monetary policy is currently appropriate given the economic uncertainties, and there is no immediate need for changes to interest rates. In India, demand for physical gold has decreased as prices have risen sharply, leading to higher discounts. Other precious metals also saw small gains, with silver up 0.1% at $33.06 an ounce, platinum rising 0.7% to $981.25, and palladium increasing 0.5% to $962.54.