Gold Rises as Dollar Declines and Tariff Uncertainty Looms

Gold prices climbed in early trading on Monday, supported by a weaker U.S. dollar as investors awaited more details on President Donald Trump's tariff plans, which could heighten global tensions.

Market Update

As of 03:13 GMT, spot gold rose by 0.6% to $2,899.73 per ounce, after reaching a record high of $2,942.70 per ounce on February 11. U.S. gold futures also increased by 0.4% to $2,912.50 per ounce.

Impact of Dollar and Trade Tensions

The dollar index hovered near a two-month low following weaker-than-expected U.S. economic data, making gold cheaper for holders of other currencies. Kelvin Wong, senior market analyst for Asia-Pacific at OANDA, noted that the weaker dollar and uncertainty over Trump's trade policy support gold prices.

Tariffs and Peace Talks

Trump continued his threats of imposing tariffs, stating that duties on cars would take effect on April 2. Meanwhile, senior officials from his administration are set to engage in peace talks with Russian and Ukrainian negotiators in Saudi Arabia in the coming days.

Tim Waterer, chief market analyst at KCM Trade, mentioned that if U.S.-Russia talks lead to better prospects for a peace agreement to end the war, demand for safe-haven assets might decrease, potentially slowing gold’s momentum. However, he also noted that ongoing tariff discussions and inflation concerns could push gold prices higher even if safe-haven demand eases.

Performance of Other Precious Metals

Silver rose by 0.9% to $32.41 per ounce, after reaching its highest level since October 31, 2024. Platinum increased by 0.8% to $986.85 per ounce, while palladium jumped by 2% to $980.70 per ounce, according to Reuters data.