Gold Prices Rise Amid Weakening Dollar and Trade Tensions

Gold prices rose on Monday, supported by a weaker dollar and increased demand for safe-haven assets amid concerns over a potential global trade conflict. Investors are awaiting further signals to assess the future policy of the U.S. Federal Reserve regarding interest rates. The U.S. dollar index remains near the four-month low reached last week, making gold, which is priced in U.S. dollars, more affordable for foreign buyers.

Expectations for a New Gold Record

“Rising risks to economic growth, along with uncertainty surrounding U.S. foreign policy, are increasing gold’s appeal,” commented Capital.com financial analyst Kyle Rodda.

“I expect $3,000 per ounce to be a level we break through soon—likely within the next few months.”

Trump’s Trade Tariffs and Market Reactions

U.S. President Donald Trump declined to predict whether the country would enter a recession after markets reacted negatively to new tariffs on imports from Mexico, Canada, and China due to fentanyl concerns.

Conflicting reports on tariffs have unsettled investors, who believe that chaotic policy shifts by the administration are creating more confusion rather than relief.

Last Tuesday, Trump imposed new 25% tariffs on imports from Mexico and Canada, as well as additional trade tariffs on Chinese goods.

Later, he announced one-month exemptions for many Mexican and Canadian products, further increasing market uncertainty and fueling fears of higher inflation and slower economic growth in the U.S.

Expectations for Inflation Data and Market Impact

Investors are now focusing on:

• U.S. Consumer Price Index (CPI) on Wednesday
• U.S. Producer Price Index (PPI) on Thursday

Gold is traditionally considered a hedge against inflation and political risks, but higher interest rates reduce its attractiveness as an asset, as it does not yield returns.

Other Precious Metals

• Silver fell 0.4% to $32.42 per ounce
• Platinum gained 0.2% to $965.15
• Palladium declined 0.1% to $949.21