Gold rises to near $5,150 as Trump’s tariffs boost haven demand, US-Iran talks eyed

• Gold gains momentum to around $5,095 in Monday’s early Asian session. 

• Trump’s trade war risks and uncertainty increase the appeal for haven assets such as Gold.

• Traders will closely monitor the next US-Iran talks on Thursday in Geneva. 

Gold price (XAU/USD) edges higher to near $5,095 during the early Asian session on Monday. The precious metal extends the rally amid US President Donald Trump’s tariff threats and uncertainty, boosting safe-haven flows. 

The US Supreme Court struck down Trump’s tariffs as illegal on Friday. Within hours, the US President invoked Section 122 of the Trade Act of 1974 to first impose a 10% global import tariff before increasing that to 15%. He declared all national security tariffs under Section 232 and existing Section 301 tariffs to be in full force and effect. Trump’s trade war risks and uncertainty could boost a traditional safe-haven asset such as Gold in the near term. 

On the other hand, hopes for the United States and Iran negotiations might cap the upside for the yellow metal. Oman’s foreign minister said Sunday that the next round of talks between the US and Iran will be on Thursday in Geneva. 

Trump warned on Friday that limited strikes against Iran are possible, even as Iranian officials at the time said Tehran expected to have a potential agreement ready in the coming days. 

Looking ahead, the US Producer Price Index (PPI) will take center stage later on Friday. This report might offer some hints about the US Federal Reserve (Fed) interest rate decisions.