Gold price prediction: will gold surge further as Russia-Ukraine conflict intensifies and US-China trade war heats up, driving safe-haven demand ahead of key US jobs data?
Why is gold rising again after recent declines?
Gold price movement:
Gold surged more than 2% early Monday, May 26, 2025.
early Monday, May 26, 2025. Spot gold climbed to $3,353.69 an ounce in London trading.
in London trading. Gold had previously touched a record high above $3,500 per ounce in April before pulling back slightly.
in April before pulling back slightly. Prices are currently up more than 25% in 2025 overall.
Market drivers:
The surge was driven by growing geopolitical risks, including an escalation in the Russia-Ukraine conflict — specifically, Ukraine's drone strikes deep inside Russia and Moscow's longest aerial assault on Kyiv.
Heightened US-China trade tensions, with President Donald Trump doubling tariffs on imported steel and aluminum to 50%, which provoked backlash and retaliatory tariff threats, notably from Canada.
The Bloomberg Dollar Spot Index fell by 0.4% , weakening the dollar and making gold cheaper for international buyers.
fell by , weakening the dollar and making gold cheaper for international buyers. Increasing investor demand for safe-haven assets amid global uncertainty.
Is the US-China trade war heating up again?
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How are currency markets impacting gold prices?
Are other precious metals reacting too?
Silver also climbed on Monday, tracking bullion's movement.
Palladium posted gains, reflecting continued industrial demand.
Platinum, however, edged slightly lower, showing a mixed reaction across the broader metals market.
What economic data could move gold next?
What are analysts saying about gold's future?
FAQs:
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Gold prices jumped more than 2% early Monday, May 26, 2025, as growing geopolitical risks reignited investor demand for safe-haven assets. The surge came amid heightened military conflict between Russia and Ukraine and rising trade tensions between the United States and China. Spot gold climbed to $3,353.69 an ounce in London trading, while the Bloomberg Dollar Spot Index slipped 0.4%, making bullion more attractive to international buyers.The rally also comes as investors look ahead to key U.S. jobs data due this week, which could shape the Federal Reserve's next move on interest rates. With inflation still a concern, analysts at Goldman Sachs said last week that gold, alongside oil, continues to play a critical role as a long-term hedge.Gold had pulled back slightly after touching a record high above $3,500 per ounce in April, but Monday's jump signals a renewed push as safe-haven demand grows. According to Bloomberg, a dramatic escalation over the weekend—where Ukraine launched drone strikes deep inside Russia and Moscow retaliated with its longest aerial assault on Kyiv—has rattled markets.These developments come just before critical peace talks scheduled for later this week, which now appear increasingly uncertain.Yes, tensions between the world's two largest economies are flaring once more. Over the weekend, both Washington and Beijing accused each other of breaking recent trade promises. In a surprise move, President Donald Trump announced plans to double tariffs on imported steel and aluminum to 50%, a decision that has already triggered backlash from U.S. trade partners.Canada quickly responded, warning of retaliatory tariffs of its own. These escalating trade threats are pressuring the dollar and pushing investors back toward gold and other hard assets.The U.S. dollar weakened, with the Bloomberg Dollar Spot Index falling 0.4% by late morning in London. A softer dollar typically boosts gold prices by making it cheaper for foreign buyers using other currencies. This is especially impactful during periods of global uncertainty, when investors often seek shelter in non-yielding assets like bullion.Yes, the rally wasn't limited to just gold. According to Bloomberg:These shifts underline how different metals are responding to both industrial trends and global economic fears.Looking ahead, investors are eyeing U.S. labor market indicators due this week, especially the May employment report. These numbers are seen as crucial in shaping the Federal Reserve's next interest rate decision.If job growth slows or wage pressures ease, the Fed may consider holding rates steady, potentially weakening the dollar further—another tailwind for gold. On the other hand, stronger-than-expected numbers could temper bullion's momentum.Goldman Sachs reaffirmed its bullish long-term view on gold last week, suggesting that the metal remains a critical hedge in investment portfolios, especially amid ongoing inflation risks and geopolitical instability.With prices already up more than 25% in 2025, many analysts believe the recent correction was temporary—and the latest global headlines may signal the start of another push toward new highs.With war tensions rising, trade fears growing, and the U.S. economy at a potential turning point, gold is once again proving its worth as a safe harbor in uncertain times. From drone strikes to tariff threats, every headline seems to be adding fuel to the fire—and for now, bullion is where investors are turning for security.Gold is rising due to rising global tensions and fresh safe-haven demand.Trade tensions weaken the dollar, which boosts gold's value.
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