HG MARKETS:

Gold prices edged higher in Asian trading on Monday, continuing their recent upward trend. This rise was fueled by increased demand for safe-haven assets due to concerns over more trade tariffs from U.S. President Donald Trump, and reports that Trump plans to send offensive weapons to Ukraine, potentially escalating the conflict with Russia.

Despite these drivers, gold’s gains were somewhat limited by a resilient dollar, which strengthened ahead of important U.S. consumer price index (CPI) data due on Tuesday. Among metals, silver was a standout performer, reaching a nearly 14-year high.

Gold’s momentum carried over from the previous week after Trump announced a 30% tariff on imports from Mexico and the European Union over the weekend, adding to a series of tariffs revealed recently. These tariffs are set to take effect on August 1st, giving major economies little time to secure new trade deals with Washington, as Trump stated he will not extend the deadline. Prior to this, Trump had already announced tariffs on Japan (25%), South Korea (25%), Brazil (50%), and a 50% tariff on copper imports. These announcements have heightened worries about economic disruption, boosting gold’s appeal as a safe haven.

Concerns about the Russia-Ukraine conflict also supported gold, following a Sunday report from Axios that Trump intends to provide offensive weapons to Ukraine for the ongoing war. This decision comes after Trump expressed disappointment with Russian President Vladimir Putin’s reluctance regarding a ceasefire.

While gold’s overall gains were somewhat restrained due to its strong performance in 2025 so far, other precious metals have also seen significant rises and multi-year highs recently. For instance, platinum futures dipped 0.6% to $1,461.40/oz, but it, along with silver, is still trading at over 10-year peaks.

In industrial metals, benchmark copper futures on the London Metal Exchange gained 0.3% to $9,694.45 a ton, partly supported by data showing increased copper shipments from top importer China in June. Overall positive Chinese trade data, with better-than-expected export growth, also suggested an easing of trade tensions with the United States. However, U.S. copper futures fell 0.5% to $5.5785 a pound, experiencing continued profit-taking after Trump’s tariff announcement had pushed domestic copper prices to record highs.

The dollar’s continued recovery from its recent three-year lows limited overall gains across metal markets, with the dollar rising 0.1% in Asian trade. The market’s main focus this week is on the U.S. consumer price index (CPI) inflation data for June, expected on Tuesday at 17:30 PKT. The report is anticipated to show increases in both core and headline inflation, with keen attention on whether Trump’s tariffs contributed to higher prices. Persistent inflation would likely reinforce the Federal Reserve’s decision to maintain current interest rates, despite President Trump’s calls for immediate rate cuts.