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Gold rises more than 1% on weaker dollar
Gold prices rose more than 1% on Monday, after falling to a three-week low in the previous session, driven by a weaker dollar while concerns over U.S. tariff policy boosted demand for the precious metal as a safe haven.
Spot gold rose 1.1% to $2,891.29 an ounce. U.S. gold futures rose 1.9% to $2,902.30 an ounce.
The dollar index fell more than 1% from a more than two-week high hit in the previous session, making gold less expensive for holders of other currencies.
Trump is expected to announce on Monday what tariffs he will impose on imports from Canada and Mexico starting Tuesday morning. Trump had pledged to impose 25% tariffs on products imported from Canada and Mexico, but that decision was suspended for a month until Tuesday.
Calvin Wong, senior market analyst at OANDA Asia-Pacific, said political uncertainty over the stalled peace deal between Ukraine and Russia helped boost demand for safe-haven gold.
The latest meeting between Ukrainian President Volodymyr Zelensky and his US counterpart Donald Trump ended in a heated exchange, adding to the uncertainty in financial markets already reeling from weak economic data and US trade volatility.
US Commerce Secretary Howard Lutnick said tariffs on Canada and Mexico would go into effect on Tuesday, while Trump signaled his intention to raise tariffs on Chinese goods to 20%, effectively doubling the 10% rate imposed on February 4.
