Spot gold jumped 2.6% to approximately $3,377 per ounce by 11:00 a.m. ET, marking its highest level since early May. U.S. gold futures followed suit, climbing 2.6% to just above $3,400 per ounce on the New York exchange.
The rally came as the U.S. dollar weakened, falling around 0.6% against a basket of major currencies. A softer dollar makes gold more affordable for foreign buyers. Equity markets also slipped, reflecting investor caution amid renewed trade friction between the United States and China, and ahead of a busy week of economic and political developments, including a key U.S. jobs report.
“The latest tariff threats on Friday—including plans to double duties on steel and aluminum to 50%—along with Ukraine’s weekend strikes deep inside Russia, have heightened geopolitical risks and driven risk-off sentiment,” said Peter Grant, vice president and senior metals strategist at Zanier Metals.
Tensions between Washington and Beijing resurfaced after U.S. President Donald Trump accused China of breaching their trade truce—an allegation Beijing has firmly denied, responding with counterclaims of its own.
U.S. Treasury Secretary Scott Bessent said on Sunday that a call between President Trump and Chinese President Xi Jinping may take place soon in an effort to resolve the trade dispute.
Investors are also awaiting commentary this week from Federal Reserve Chair Jerome Powell and other central bank officials for guidance on the future path of interest rates.
“For gold, this environment of rising risk aversion and fiscal unpredictability is highly supportive,” he added.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Qilu Bank Enhances Support for Small Businesses with Innovative Financial Tools
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
