Gold prices regained ground on Monday, stabilising after last session’s dip to a three-week low. A weaker dollar and renewed safe-haven demand have bolstered the precious metal as investors assess the impact of U.S. tariff policies and broader economic uncertainty.
Spot gold climbed 0.3% to $2,868.54 an ounce, while U.S. gold futures saw a stronger gain of 1%, hitting $2,878.90. The dollar index retreated 0.4% after reaching a two-week high, making gold more attractive to non-dollar buyers. Analysts continue to highlight gold’s resilience, with Han Tan of Exinity Group pointing to its safe-haven appeal amid economic and geopolitical instability.
Market sentiment remains cautious after former U.S. President Donald Trump threatened an additional 10% tariff on Chinese goods, pushing cumulative duties to 20%. This escalation adds to global growth concerns, reinforcing gold’s role as a hedge against volatility.
Gold briefly lost over 1% in the previous session as U.S. inflation data suggested the Federal Reserve may take a measured approach to interest rate cuts. Given gold’s inverse relationship with interest rates, this momentary pullback was expected. However, the broader outlook remains bullish. UBS analysts maintain their forecast of gold reaching $3,000 per ounce this year, with potential highs of $3,200 under certain risk conditions. Silver is also in focus, with analysts predicting further upside as the gold rally consolidates and industrial demand picks up.
Silver gained 0.6% to $31.35 an ounce, platinum inched up 0.3% to $950.20, and palladium saw the biggest jump, rising 1.2% to $929.79. Investors now await the U.S. payrolls report later this week for further clues on Federal Reserve policy, which could be a key driver for the next leg of the gold market’s trajectory.
London-listed company KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
