Gold Gains as Dollar Pushes Lower Ahead of Key US Economic Data
Gold advanced as the dollar and bond yields pushed lower, with traders awaiting a slew of key economic data this week that could shed some light on the impact of President Donald Trump’s trade war.
Data on jobs, inflation and economic growth are slated to hit from Wednesday to Friday. On Monday, a widely followed measure of Texas manufacturing activity weakened significantly as executives used words like “chaos” and “insanity” to describe the turmoil spurred by President Donald Trump’s tariffs, according to a report by the Federal Reserve Bank of Dallas.
Meanwhile, Treasury Secretary Scott Bessent told CNBC the US has put China to the side for now as it seeks trade deals with between 15 to 17 other countries, while indicating it’s up to Beijing to take the first step in de-escalating the tariff fight.
The dollar fell while Treasury yields edged lower, helping send bullion higher by as much as 1%.
“Gold is reasserting its role as a strategic asset in a fragmented, multipolar world,” said Sayad Reteos Baronyan, director of multi-asset research and global investment research at FTSE Russell.
The metal has climbed more than 25% this year as Trump’s aggressive trade policy and fears about the global economy spurred demand for haven assets. The gains have also been supported by inflows into bullion-backed exchange-traded funds, central-bank buying and signs of strong speculative demand in China, even as physical consumption in the world’s biggest buyer falls.
Gold for immediate delivery gained 0.9% to $3,350.65 by 3:20 p.m. in New York. The Bloomberg Dollar Spot Index fell 0.5%. Silver, platinum and palldium all rose.
Source: Bloomberg
