Safe-haven fever is back.
Gold prices are on the rise again. On Monday, spot gold went up by 2.6 percent, landing at around $3,377 an ounce. That’s the highest it’s been since early May. In New York, US gold futures crossed $3,400 an ounce.
Why is this happening now? It’s all about investors getting nervous. Over the weekend, Ukraine launched fresh attacks inside Russia. At the same time, the US announced plans to double tariffs on steel and aluminium imports from China.
This is making people uneasy. When things feel risky in the world, investors look for safer places to put their money. Gold is often the top choice.
The US dollar also dropped about 0.6 percent. That made gold cheaper for buyers in other countries, pushing up demand even more.
Big Moment for Small Miners
The gold price jump is great news for small-cap mining companies. These are the smaller players in the industry that often don’t get much attention. But when gold prices rise, even the smaller miners can benefit.
A lot of these companies are listed on markets like the UK’s AIM or US OTC markets. They tend to be riskier, but if gold prices stay high, the payoff could be big. Investors start taking a closer look at these small mining stocks when safe-haven demand spikes.
Silver also had a strong day, rising more than 4 percent. It often moves in the same direction as gold, and investors see it as another safe choice when markets look shaky.
The Risk No One’s Talking
This gold rush isn’t just about war headlines. There’s also rising worry about the US economy. The week ahead includes a major jobs report and comments from Federal Reserve Chair Jerome Powell. Investors are trying to guess what the Fed will do next with interest rates.
On top of that, concerns about the US debt ceiling and ongoing fiscal uncertainty are keeping things tense. Trade tensions between the US and China are also back. President Trump accused China of breaking trade promises, and China hit back with its own claims.
All this makes people cautious. That’s why gold is back in demand, and why small-cap mining companies may be getting a rare spotlight.
