Gold prices surged on Monday as the dollar weakened, with investors closely watching developments in U.S. President Donald Trump’s reciprocal tariff plans, which could escalate global trade tensions.
As of 0536 GMT, spot gold rose by 0.6% to $2,900.47 per ounce, while U.S. gold futures gained 0.4%, trading at $2,912.00 per ounce.
Dollar Weakness Supports Gold Demand
The dollar index hovered near a two-month low, driven by recent U.S. economic data that fell short of expectations. A weaker dollar makes gold more affordable for holders of other currencies, fueling investor demand for the precious metal.
Kelvin Wong, Senior Market Analyst for Asia Pacific at OANDA, noted that gold is benefitting from both the dollar’s weakness and uncertainty surrounding Trump’s tariff policies. “Gold is being supported by the dollar’s weakness and uncertainty over how Trump will engage with major trading partners in enforcing his trade tariff policy,” Wong explained.
Trump’s Tariff Threats Heighten Market Tension
On Friday, Trump renewed his tariff threats, stating that levies on automobiles could be imposed as early as April 2. The following week, Trump directed U.S. commerce and economic officials to study reciprocal tariffs against nations that impose tariffs on U.S. goods, with recommendations due by April 1.
These developments are contributing to rising demand for bullion, which is traditionally seen as a hedge against inflation and geopolitical instability.
Silver, Platinum, and Palladium Also See Gains
Spot silver also saw an uptick, rising by 0.7% to $32.36 per ounce, after hitting its highest level since October 31 on Friday. Some analysts suggest that silver investors may push to challenge a 10-year high.
Meanwhile, platinum rose by 0.6% to $984.98 per ounce, and palladium jumped 1.7%, trading at $977.99 per ounce, reflecting broader positive momentum in precious metals.
Outlook for Gold and Other Precious Metals
As geopolitical uncertainties and the potential for heightened trade tensions continue, gold and other precious metals are likely to remain attractive to investors seeking safe-haven assets. The ongoing market volatility could drive further gains in the near term, especially if the dollar remains under pressure.
Related topics：
- What is the Value of 18K Gold?
- Why Does Gold Price Increase During War?
- What is the Best Price Being Paid for Gold Sovereigns?
