Global trade tensions increase as gold price rises

Gold prices climbed on Monday as the dollar weakened, with investors awaiting further details on the US’s reciprocal tariff plans, which could escalate global trade tensions. Spot gold was up by 0.6 per cent at $2,900.47 per ounce, as of 0536 GMT. US gold futures gained 0.4 per cent to $2,912.00.

 The dollar index hovered near a two-month low as traders assessed recent weaker-than-expected US economic data. A weaker US dollar makes bullion more affordable for holders of other currencies.

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, said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.

Bullion is viewed as a traditional hedge against rising prices and geopolitical uncertainties.