Gold prices rose nearly 2% to a one-week high on Monday, driven by safe-haven demand as renewed U.S. tariff threats from President Donald Trump and escalating tensions between Russia and Ukraine heightened global trade and geopolitical fears.
Spot gold was up 1.9% at $3,352.69 an ounce, as of 0824 GMT, after hitting its highest level since May 23, earlier in the session.
U.S. gold futures rose 1.9% to $3,377.50.
The dollar was down 0.5% against its rivals, after Trump said late on Friday that he plans to double duties on imported steel and aluminium to 50%, and as Beijing hit back against accusations it violated an agreement on critical minerals shipments.
A weaker dollar makes bullion more appealing for other currency holders.
On Sunday, Treasury Secretary Scott Bessent said Trump would soon speak with Chinese President Xi Jinping to iron out a dispute over critical minerals.
“I guess risk-off (sentiment) with Asian equities lower is one factor, the other is rising geopolitical tensions - including the escalation in tensions between Ukraine and Russia - (is) lifting demand for safe haven assets such as gold,” said Giovanni Staunovo, UBS analyst.
Gold falls as dollar strengthens ahead of key US inflation data
“Ongoing trade tensions between China and the US are an additional supportive factor for gold.”
On the geopolitical front, Ukraine and Russia ramped up attacks ahead of their second peace talks in Istanbul, including a major Ukrainian strike and a Russian overnight drone assault.
In the U.S., Fed Chair Jerome Powell is set to speak later today, while markets also look forward to speeches from several U.S. Federal Reserve officials this week for signals on the monetary policy outlook.
Gold, widely regarded as a safe-haven asset during periods of geopolitical and economic uncertainty, typically performs well in a low-interest-rate environment.
Spot silver rose 1.3% to $33.42 an ounce, platinum was down 0.4% at $1,051.95 and palladium rose 0.1% to $972.25.
Comments
Comments are closed for this article.