Gold prices surged to a record high on Monday, spurred by concerns over global economic growth due to the spiralling Sino-US trade war, with a weaker dollar further boosting the rally.
Spot gold had advanced 1.7 percent to $3,383.87 an ounce, after hitting a record high of $3,384 earlier in the session.
US gold futures firmed 2 percent to $3,396.10.
The dollar index hit a three-year low, making gold more attractive for other currency holders.
“Fundamentally, markets are pricing in heightened geopolitical risks, driven by US tariff tensions and stagflation concerns, while resilient central bank demand offers an added tailwind for prices as well,” said IG market strategist Yeap Jun Rong.
US President Donald Trump announced “reciprocal tariffs” on dozens of countries on April 2 and while his administration has paused levies for some countries, it has ratcheted up its trade battle with China.
China on Monday warned countries against striking a broader economic deal with the United States at its expense, a move Trump is reportedly seeking from countries seeking tariff reductions or exemptions.
Meanwhile, Trump launched a series of attacks against Federal Reserve Chair Jerome Powell on Thursday, with his team evaluating whether they could fire Powell.
