Investor appetite for gold remains strong, pushing the metal above the $2,900 mark on Monday as risk aversion drives market sentiment. Gold’s appeal as a safe-haven asset has surged in response to heightened geopolitical tensions and new tariff threats from U.S. President Donald Trump. During American trading hours, XAU/USD reached $2,911.21 and stayed close to that level by the session’s end.

Over the weekend, President Trump announced plans to impose 25% tariffs on all steel and aluminum imports, with additional reciprocal tariffs expected on countries imposing levies on U.S. exports. His remarks during an Air Force One interview have added to investor caution, supporting the ongoing rally in gold prices.

Meanwhile, demand for safe-haven assets has outpaced the U.S. dollar, with both gold and the Japanese yen attracting more attention despite Wall Street’s modest intraday gains. The U.S. dollar remains firm against high-yielding currencies, but lingering concerns over trade policies and potential economic fallout are keeping gold buyers active.

Looking ahead, markets will focus on key U.S. events this week. Federal Reserve Chair Jerome Powell’s testimony before Congress on Tuesday and Wednesday is expected to provide guidance on future monetary policy. Additionally, Wednesday’s release of the January Consumer Price Index (CPI) will be a key economic indicator. The core annual reading is projected to ease to 3.1%, down from December’s 3.2%, potentially influencing market sentiment further.