Safe-haven rush lifts gold to one-week peak as trade, geopolitical risks intensify
Gold prices rose nearly 2% to a one-week high on Monday, driven by safe-haven demand as renewed U.S. tariff threats from President Donald Trump and escalating tensions between Russia and Ukraine heightened global trade and geopolitical fears.
Spot gold was up 1.9% at $3,352.69 an ounce, as of 0824 GMT, after hitting its highest level since May 23, earlier in the session.
U.S. gold futures rose 1.9% to $3,377.50.
The dollar was down 0.5% against its rivals, after Trump said late on Friday that he plans to double duties on imported steel and aluminium to 50%, and as Beijing hit back against accusations it violated an agreement on critical minerals shipments.
A weaker dollar makes bullion more appealing for other currency holders.
On Sunday, Treasury Secretary Scott Bessent said Trump would soon speak with Chinese President Xi Jinping to iron out a dispute over critical minerals.
'I guess risk-off (sentiment) with Asian equities lower is one factor, the other is rising geopolitical tensions - including the escalation in tensions between Ukraine and Russia - (is) lifting demand for safe haven assets such as gold,' said Giovanni Staunovo, UBS analyst.
Gold falls as dollar strengthens ahead of key US inflation data
'Ongoing trade tensions between China and the US are an additional supportive factor for gold.'
On the geopolitical front, Ukraine and Russia ramped up attacks ahead of their second peace talks in Istanbul, including a major Ukrainian strike and a Russian overnight drone assault.
In the U.S., Fed Chair Jerome Powell is set to speak later today, while markets also look forward to speeches from several U.S. Federal Reserve officials this week for signals on the monetary policy outlook.
Gold, widely regarded as a safe-haven asset during periods of geopolitical and economic uncertainty, typically performs well in a low-interest-rate environment.
Spot silver rose 1.3% to $33.42 an ounce, platinum was down 0.4% at $1,051.95 and palladium rose 0.1% to $972.25.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
an hour ago
- Express Tribune
Bilawal urges Trump to mediate talks between Pakistan, India over Kashmir
Bilawal Bhutto Zardari, former Foreign Minister of Pakistan and current head of the Pakistan People's Party, leads a delegation to Washington, which played a key mediatory role in a ceasefire after Pakistan's conflict with India in May. Photo: AFP Listen to article Heading the Parliamentary Diplomatic Committee, Pakistan Peoples Party (PPP) Chairman and former foreign minister Bilawal Bhutto Zardari has called on US President Donald Trump to play a role in defusing tensions between Pakistan and India. In an interview with AFP, Bilawal urged US President Donald Trump to play an active role in bringing India to the negotiating table for comprehensive talks with Pakistan. He stated that while Pakistan is open to discussions on terrorism, the central issue of any meaningful dialogue must be the Kashmir conflict. He highlighted the growing dangers posed by India, which used terrorism as a justification for military action, potentially destabilising the entire South Asian region. "The destiny of 1.7 billion people cannot be left to faceless non-state actors or India's so-called new normal," he warned. In a separate interview with Chinese media, Bilawal called out India for deliberately undermining regional peace through unilateral aggression on Pakistani soil. He stressed that the Pakistani community in the US must unite and contribute to shared goals of peace and prosperity. He reaffirmed Pakistan's commitment to peace and dialogue, emphasising the country's role as a responsible actor amid rising tensions. The former FM appealed to the international community to support efforts for peace, noting that lasting stability in South Asia hinges on inclusive dialogue. A peaceful South Asia, with normalised trade relations between India and Pakistan, would bring widespread benefits to the region and beyond, he added. Bilawal further acknowledged the sacrifices made by Pakistan's military leadership in the ongoing fight against terrorism. "We have consistently taken steps toward peace, while India continues its aggression," he said. "If India escalates the situation, Pakistan retains the right to respond accordingly." He also addressed the issue of Indian-sponsored terrorism in Balochistan, supporting terrorist groups like the Balochistan Liberation Army (BLA) and th Tehreek-e-Taliban Pakistan (TTP). He questioned whether this would lead to an ongoing cycle of conflict after every terrorist attack, given India's approach. Read more: India laying ground for 'first nuclear water war', says Bilawal Meanwhile, Bilawal held meetings with key figures, including Senator Tom Cotton, Congress members Liu Correa and Brian Mast, and senior officials from the US Department of Homeland Security. These discussions focused on regional cooperation, the Kashmir dispute, and the broader implications for US-Pakistan relations. During a talk at the Middle East Institute in Washington, he underscored the urgent need for the resolution of long-standing conflicts in the region. He reiterated Pakistan's willingness to engage in discussions on Kashmir, terrorism, and water issues, but emphasized the need for the US to act as a mediator to advance the dialogue. He pointed out that India's actions in Kashmir have violated international agreements and UN resolutions. He commended the recent US efforts in offering to mediate, which has re-internationalised the Kashmir issue, disproving India's narrative that Kashmir is a bilateral matter. He further stressed that Pakistan condemns terrorism and firmly rejects any involvement in recent incidents in Kashmir, calling for impartial international investigations, which India has so far rejected. Bilawal also raised concerns over India's threat to disrupt Pakistan's water supply under the Indus Water Treaty, describing this as a potential trigger for war. He urged the US and the international community to intervene and prevent this dangerous trend, warning of its catastrophic consequences for the entire region. Also read: South Asia at brink over Kashmir and Indus Water Treaty, Bilawal warns US lawmakers Reflecting on the recent conflict with India, he highlighted Pakistan's military victories, including the shooting down of Indian aircraft. He noted that, at the diplomatic level, the world has once again recognised the importance of Pakistan-India relations. He expressed hope for future cooperation between India and Pakistan, particularly in the areas of trade, water security, and environmental challenges like flooding and drought. He also proposed the possibility of an India-Pakistan Economic Corridor, which could enhance bilateral prosperity while benefiting regional and global stakeholders, particularly the US. Bilawal concluded the mission with a strong call for international support in ensuring lasting peace and stability in South Asia, stressing that both Pakistan and India must prioritise dialogue and cooperation to address shared challenges and secure a prosperous future for the region. Other members of the parliamentary delegation thanked the US for its positive response and reaffirmed Pakistan's commitment to peaceful resolutions of all unresolved issues. They also urged global leaders to support this critical diplomatic mission.
Express Tribune
an hour ago
- Express Tribune
US imposes new sanctions on Iran, targeting 10 individuals and 27 entities
Listen to article The US has issued a new round of Iran-related sanctions targeting 10 individuals and 27 entities, including at least two companies it said were linked to Iran's national tanker company, the US Treasury Department said on Friday. The sanctions, which target Iranian nationals and some entities in the United Arab Emirates and Hong Kong, were announced as US President Donald Trump's administration is working to get a new nuclear deal with Tehran. Treasury's Office of Foreign Assets Control added Ace Petrochem FZE, and Moderate General Trading LLC, both registered in the UAE, to its Specially Designated Nationals List, freezing any of their US assets. OFAC said they are both linked to the state-owned National Iranian Tanker Company which is under US sanctions for exporting oil. Talks between Iran and the US that aim to resolve a decades-long dispute over Tehran's nuclear ambitions have been stuck over disagreements about uranium enrichment. Iran's mission to the United Nations in New York did not immediately respond to a request for comment.
Business Recorder
3 hours ago
- Business Recorder
Wall Street rises on jobs data optimism; Tesla rebounds
US stocks rose on Friday after a better-than-expected jobs report calmed worries about the economy, while Tesla rebounded from a sharp plunge a day earlier and technology stocks continued to rise. Data showed nonfarm payrolls increased by 139,000 jobs last month after rising by a downwardly revised 147,000 in April. Economists polled by Reuters had forecast payrolls advancing by 130,000 jobs. The unemployment rate stood at 4.2%, in line with expectations. 'Things are slowing, but they're not collapsing and that's the good news. We're not seeing a serious degradation of the jobs market,' said Art Hogan, chief market strategist at B Riley Wealth. Following the report, traders bet that Federal Reserve policymakers have little reason to rush on rate cuts. They are seen waiting until September to cut rates, with just one more cut in view by December, based on interest rate futures. The central bank's policy meeting is due later this month. Weaker-than-expected private payrolls numbers and surveys on services sector this week had raised concerns about an economic slowdown caused by trade uncertainties. White House trade adviser Peter Navarro said the planned meeting between U.S. and Chinese official on trade is expected to take place within seven days. Wall Street gains as investors focus on trade Trump and Chinese leader Xi Jinping spoke on Thursday after weeks of brewing trade tensions and a battle over critical minerals. The leaders, however, left key issues unresolved for future talks. U.S. equities rallied sharply in May, with the S&P 500 index and the tech-heavy Nasdaq scoring their biggest monthly percentage gains since November 2023, thanks to softening of Trump's harsh trade stance and upbeat earnings reports. The S&P 500 hit its highest in over three months on Friday and remains nearly 2.2% below record highs touched in February. The Dow index also rose to a near three-month high. The economically sensitive Russell 2000 smallcap index gained 1.3%. The Cboe Volatility Index, known as Wall Street's 'fear gauge,' fell 1.19 points to 17.29, its lowest in over two months. At 10:24 a.m. ET, the Dow Jones Industrial Average rose 541.42 points, or 1.28%, to 42,861.16, the S&P 500 gained 69.27 points, or 1.16%, to 6,008.45 and the Nasdaq Composite gained 246.51 points, or 1.28%, to 19,544.96. All of the 11 major S&P 500 sub-sectors rose, led by communication services with a 1.9% rise, while technology stocks gained 1.1%. Shares of Tesla rose 3.9% after plunging about 15% on Thursday following Trump's public feud with Musk, including threats to cut off government contracts with Musk's companies. Other megacap companies including Amazon was up 1.9%, while Alphabet gained 2.8%. Broadcom shares fell 3.3% after the networking and custom AI chipmaker's quarterly revenue forecast failed to impress investors. Lululemon shares lost 20.4% as the sportswear maker cut its annual profit target, citing higher costs from Trump's tariffs. Shares of virtual document signing platform DocuSign fell 18.9% after first-quarter results. Advancing issues outnumbered decliners by a 2.7-to-1 ratio on the NYSE and by a 2.82-to-1 ratio on the Nasdaq. The S&P 500 posted 20 new 52-week highs and no new lows, while the Nasdaq Composite recorded 47 new highs and 24 new lows.
