Gold prices rebounded on Monday as a weaker dollar and heightened geopolitical uncertainty revived investor appetite for safe-haven assets. The move comes after US Treasury Secretary Scott Bessent reaffirmed President Donald Trump’s threat to reimpose tariffs on trade partners failing to negotiate in “good faith.”
Spot gold rose 0.4% to $3,216.29 an ounce by 0445 GMT, while US gold futures advanced 1% to $3,219.20.
The uptick follows a sharp 2% drop on Friday, when gold logged its worst weekly performance since November amid increased risk appetite following a temporary US-China trade agreement.
Contributing to gold’s bounce was a 0.3% decline in the US dollar, which made dollar-denominated gold more affordable for international buyers.
Adding further fuel to gold’s ascent was Moody’s downgrade of the US sovereign credit rating, citing mounting concerns over America’s growing debt. The downgrade sparked a risk-off move in markets, boosting gold’s appeal as a hedge.
“Moody’s downgrade and the corresponding risk-off reaction by the market has put some pep back into the gold price,” said Tim Waterer, Chief Market Analyst at KCM Trade.
Meanwhile, Bessent’s reiteration of Trump’s trade threats reminded markets of the potential for renewed trade disruption, supporting gold’s safe-haven narrative. Trump’s “strategic uncertainty” has long unsettled global trade and investment flows, with analysts warning of further volatility ahead.
Gold, which typically benefits during economic turbulence and low interest rate environments, also found support from recent soft US macro data. Producer prices fell unexpectedly in April, retail sales growth slowed, and inflation came in below expectations—all of which could push the Federal Reserve toward a rate cut by July or September, Waterer suggested.
Other precious metals also edged higher:
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Spot silver rose 0.1% to $32.31/oz
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Platinum gained 0.2% to $989.31/oz
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Palladium added 0.3% to $963.94/oz
