Gold prices rebound on weaker US dollar and tariff concerns
Gold prices rose over 1% on Monday after falling to a three-week low in the previous session, driven by a weaker dollar and safe-haven buying amid concerns over U.S. President Donald Trump's tariff policies.
Spot gold gained 1.1% to $2,890.57 an ounce as of 02.04 p.m. ET (1904 GMT). U.S. gold futures settled 1.8% higher at $2,901.1.
"I think ultimately we are in a very bullish market and gold can get much higher than $3,000 ... with tariffs and possible retaliation I still think you're seeing central banks come in and buy," said Daniel Pavilonis, senior market strategist at RJO Futures.
The dollar index (.DXY), opens new tab dropped by over 1%, moving away from a more than two-week high hit in the previous session, reflecting weakness that makes dollar-priced gold less expensive for buyers holding other currencies.
Trump is expected to decide on Monday what level of tariffs he will impose effective from early Tuesday, on imports from Canada and Mexico.
Last week, Trump threatened China with an additional 10% duty, also set to take effect on Tuesday, resulting in a cumulative 20% tariff.
Investors will also focus on the ADP employment report due on Wednesday and the U.S. non-farm payrolls report due on Friday for more clues on the Federal Reserve's monetary policy.
Despite being widely viewed as a hedge against geopolitical and economic uncertainty, non-yielding gold becomes less attractive to investors when interest rates rise.
Spot silver was up 2% at $31.77 an ounce, platinum gained 0.9% to $956.50 and palladium added 2% to $937.10.
Source: Reuters
