Concerns over tariffs boosted safe-haven demand, causing gold prices to rise significantly on Monday.

Gold prices surged 2% on Monday on 2 June, prompting investors to turn to safe-haven gold amid the escalation of Russia's invasion of Ukraine and US President Donald Trump's renewed threat of double tariffs on steel and aluminium imports. Trump said on Friday local time that he planned to raise tariffs on imported steel and aluminum from 25% to 50%, prompting the European Commission to warn that Europe was ready to retaliate. Tim Waterer, chief market analyst at KCM trade, said: "With trade and geopolitical concerns resurfacing again, it's no surprise that gold prices started the week higher." Ahead of the second round of peace talks in Istanbul, hostilities between Ukraine and Russia escalated, with a wave of attacks on both sides, including one of Ukraine's most daring attacks in the conflict, and a Russian drone attack at night. "Risk assets opened the week lower, and a weaker dollar also supported gold prices," Waterer said. ( gold ten )