Gold Nears Record Highs as Dollar Weakens and Trade Tensions Escalate

Gold surged in early Monday trading, approaching the critical $3,400 per ounce mark, as the U.S. dollar plunged to a three-year low and fears of a global recession intensified amid escalating trade tensions between the United States and its major partners. Growing market uncertainty has prompted investors to flock to gold as a traditional safe-haven asset.

Price Update:

Spot gold rose by 1.6% to $3,382 per ounce as of 07:03 GMT.

U.S. gold futures climbed more than 2%, reaching $3,395, according to Reuters data.

The U.S. dollar index hit its lowest level in three years, increasing the appeal of gold for holders of other currencies. Heightening concerns, a Boeing 737 MAX aircraft originally intended for a Chinese airline was returned to the U.S. amid rising trade tensions between the world’s two largest economies.

Last week, President Donald Trump ordered an investigation into potential new tariffs on all U.S. imports of base metals, signaling a significant escalation in his trade dispute with global partners and increasing pressure on China, the dominant player in the metals sector.

Gold, traditionally seen as a hedge against inflation and economic turmoil, has gained more than 27% since the beginning of the year.

Other Precious Metals:

Silver rose 0.1% to $32.63 per ounce as of 00:37 GMT.Platinum was up 0.2% to $969.20.Palladium, however, slipped 0.3% to $959.20.