Gold Gains as U.S. Dollar Weakens; Investors Eye Tariff Plans
Gold prices rose on Monday as the U.S. dollar weakened, with investors awaiting further details on U.S. President Donald Trump’s tariff plans, which could escalate global trade tensions.
Spot gold climbed 0.6% to $2,899.73 per ounce as of 03:13 GMT, edging closer to its record peak of $2,942.70, reached on February 11. U.S. gold futures also gained, rising 0.4% to $2,912.50.
The dollar index hovered near a two-month low as traders assessed weaker-than-expected U.S. economic data, making bullion more attractive for holders of other currencies.
"The dollar’s weakness and uncertainty around how Trump will enforce his trade tariff policy with major trading partners are supporting gold," said Kelvin Wong, senior market analyst at
OANDA for Asia Pacific.
Trump reinforced his stance on tariffs last Friday, stating that levies on automobiles could come as soon as April 2.
Meanwhile, senior U.S. officials are set to engage in peace talks with Russian and Ukrainian negotiators in Saudi Arabia in the coming days.
"If negotiations improve the odds of a peace deal that ends the war, safe-haven buying could wane, potentially weakening gold’s momentum," noted Tim Waterer, chief market analyst at KCM Trade.
However, lingering concerns over tariffs and inflation could still support gold prices even if safe-haven demand diminishes.
Gold remains a traditional hedge against inflation and geopolitical uncertainty.
Other precious metals also saw gains:
Spot silver rose 0.9% to $32.41 per ounce, after hitting its highest level since October 31, 2024. Some analysts suggest silver investors may attempt to challenge a 10-year high.
Platinum increased 0.8% to $986.85 per ounce.
Palladium jumped 2% to $980.70 per ounce.
Prices and figures quoted were correct at the time of writing.
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