Washington: Gold set new highs for the day on Monday amid rising trade tensions around the world, uncertainty for the economy, and the weaker dollar. As of 04:32 GMT, spot gold rose 1.4% to $3,373.70 and the price had briefly topped $3,385.08 earlier in the session. US gold futures were also up by 1.8% to $3,386.50 on robust demand for safe-haven assets.
The spike has occurred due to the increasing trade tensions between the US and China, with President Donald Trump's reciprocal tariffs shaking the global markets. With growing fears of economic slowdowns and stagflation, investors in gold have been further distancing themselves from riskier assets. Meanwhile, the dollar index sank to three-year lows, rendering gold even more appealing to holders of alternative currencies.
The report comes amid increased global tensions, the situation concerning Russia and Ukraine following ceasefire violations over Easter, and speculation that the White House is weighing the dismissal of Federal Reserve chair Jerome Powell.
Some analysts have termed central bank demand and geopolitical instability as strong tailwinds for gold. IG market strategist Yeap Jun Rong observed that "the markets are currently pricing in a multitude of risk factors" that vary from monetary policy uncertainty to fragile global economic conditions.
Gold has hit the 75 mark on the RSI, which is considered overbought. The next target is $3,500; however, some correction may be due, experts suggest.
In other metals, silver was up $0.55 to $32.71, platinum was up $40.65 to $969.65, and palladium was down $5.99 to $957.68. Further, in Pakistan, gold prices remained stable as the local market kept an eye on international developments.
[Source Credit: Business Recorder]
