Gold gains on softer dollar, Trump tariff threats
Gold prices rose on Monday, hovering above $2,900 per ounce, driven by a weaker dollar and fears of an impending trade war as U.S. President Donald Trump threatened reciprocal tariffs.
Spot gold was up 0.7% at $2,903.08 as of 0950 GMT after hitting a record high of $2,942.70 last week. U.S. gold futures gained 0.5% to $2,915.30.
The U.S. dollar hovered near a two-month low, making bullion less expensive for buyers holding other currencies.
"Gold is still benefiting from investors looking for safe-haven assets amid concerns of a tariffs and trade war," UBS analyst Giovanni Staunovo said.
"We continue to see upside for gold, with the yellow metal expected to rise to $3,000, benefiting also from ongoing central bank demand."
On Friday, Trump kept alive his drumbeat of tariff threats, saying levies on automobiles would be coming as soon as April 2. It was the latest in a litany of trade actions he has unveiled since taking office for the second time.
Meanwhile, U.S. Secretary of State Marco Rubio said on Sunday that Ukraine and Europe would be part of any "real negotiations" to end Moscow's war.
"Progress in the ongoing Russia-Ukraine peace talks could dilute some of gold's year-to-date gains, though the precious metal still enjoys enough tailwinds to keep spot prices supported," said Exinity Group chief market analyst Han Tan.
Bullion is viewed as a traditional hedge against inflation and geopolitical uncertainties, but higher interest rates dull non-yielding bullion's appeal.
Some Federal Reserve officials are set to speak later in the day and market participants will be on the watch for any clues on the path for U.S. interest rates. The U.S. market is closed for the President's Day holiday.
Spot silver rose 0.9% to $32.42 an ounce after hitting its highest level since October 31 on Friday.
Platinum gained 0.3% to $982.90 and palladium jumped 2.3% to $983.29.
Source: Reuters
