Gold prices rose on Monday as the US dollar weakened, with investors awaiting further details on US President Donald Trump’s tariff plans, which could escalate global trade tensions. Spot gold rose 0.6% to $2,899.73 per ounce as of 0313 GMT.
Bullion scaled a record peak of $2,942.70 on February 11. US gold futures gained 0.4% to $2,912.50.
The dollar index hovered near a two-month low as traders assessed recent weaker-than-expected US economic data.
A weaker dollar makes bullion less expensive for other currency holders.
The dollar’s weakness and uncertainty around how Trump will engage with major trading partners in enforcing his trade tariff policy are supporting gold, said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.
On Friday, Trump kept alive his drumbeat of tariff threats, saying levies on automobiles would come as soon as April 2.
Meanwhile, senior Trump administration officials will begin peace talks with Russian and Ukrainian negotiators in Saudi Arabia in the coming days.
“If talks between US and Russian officials improve the odds for a peace deal being reached that ends the war, safe-haven buying demand could wane, which could see gold lose some of its impetus,” said Tim Waterer, chief market analyst at KCM Trade.
“But with tariff and inflation talk still a worry for investors, gold could still rally even if safe-haven flows recede.”
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Bullion is viewed as a traditional hedge against rising prices and geopolitical uncertainties.
Spot silver rose 0.9% to $32.41 an ounce, after hitting its highest level since October 31, 2024, on Friday, latching on to factors that drove gold to successive record highs, with some analysts suggesting investors in the metal may aim to challenge a 10-year high.
Platinum gained 0.8% to $986.85 and palladium jumped 2% to $980.70.
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