Gold Reclaims $3,400 per Ounce — Trump’s Tariff Threats Fuel Rally

TradingKey - At 10:36 a.m. ET on Monday, gold prices surged past $3,400 per ounce for the first time since June 17.

According to reports, EU envoys are expected to hold emergency meetings this week to draft contingency plans in response to U.S. President Donald Trump’s tariff threats. As the August 1 deadline draws closer, Trump has taken an increasingly hardline stance in negotiations. Sources indicate that little substantive progress has been made since last week’s talks in Washington, making the next two weeks a critical window for diplomacy.

Earlier, Trump sent a letter to the EU warning that if no agreement is reached, the U.S. will impose 30% tariffs on most EU exports, including 25% on cars and auto parts , and 50% on steel and aluminum . Additionally, he threatened to impose new tariffs on pharmaceuticals, semiconductors, and a 50% tariff on copper imports, starting next month.

The EU estimates that U.S. tariffs currently apply to €380 billion worth of EU exports, representing about 70% of total EU exports to the U.S. Facing escalating trade pressure, the bloc is working to align internal positions and balance negotiation efforts with potential retaliatory measures.

Brazilian Finance Minister Fernando Haddad said on Monday that Brazil will continue negotiations with the U.S. on trade issues, while acknowledging that a deal may not be reached before the August 1 deadline, when Trump has threatened to impose 50% tariffs on Brazilian goods.

Gold’s move back to $3,400 was clearly driven by rising trade tensions and policy uncertainty. Whether it can sustain above this key level will depend heavily on developments surrounding U.S. tariff policies in the coming weeks.