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Gold Prices Climb on Tariff and Japan Election Uncertainty

Gold prices rose on Monday as investors turned to safe-haven assets amid heightened global uncertainty surrounding potential trade tariffs and Japan’s upcoming election. The precious metal gained modestly, with market sentiment shifting cautiously ahead of key political and economic developments.

Safe-Haven Demand Rises Amid Political and Trade Tensions

Spot gold edged higher to trade near $2,410 an ounce, while futures mirrored similar gains. According to Investing.com, investors are increasingly wary of trade-related disruptions and regional political risks, fueling fresh demand for precious metals.

The uncertainty surrounding potential new tariffs between major economies and Japan's political landscape ahead of its upper house election has encouraged a broader shift to risk-off assets such as gold, silver, and U.S. Treasuries.

Market Eyes Political Signals and Economic Impact

Investors are watching closely for any updates on tariff discussions and Japan’s election outcome, both of which could influence broader macroeconomic momentum. The EconoTimes reports that this cautious sentiment is also lifting platinum and silver, which have approached multi-year highs.

Meanwhile, the mixed performance of the U.S. dollar across major currency pairs, as highlighted by Moneta Markets, continues to influence investor appetite for commodities, including gold.

Outlook: Gold May Hold Strength If Risks Persist

Should trade tensions deepen or political uncertainty in Japan linger, analysts expect gold to remain well-supported. While a stronger dollar may offer some resistance, any dovish signals from central banks could provide further upside for precious metals.

For now, gold continues to shine as a reliable hedge amid rising volatility. With major economic and political crosswinds ahead, its role as a portfolio stabilizer remains firmly intact.

 

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