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Gold prices climbed on Monday as the dollar weakened, with investors awaiting further details on US President Donald Trump’s reciprocal tariff plans, which could escalate global trade tensions.
Spot gold was up by 0.6 per cent at $2,900.47 per ounce, as of 0536 GMT. US gold futures gained 0.4 per cent to $2,912.00.
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The dollar index hovered near a two-month low as traders assessed recent weaker-than-expected US economic data.
A weaker US dollar makes bullion more affordable for holders of other currencies.
Gold is being supported by the dollar’s weakness and uncertainty over how Trump will engage with major trading partners in enforcing his trade tariff policy, said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.
Trump renewed his tariff threats on Friday, saying that levies on automobiles would be imposed as early as April 2.
Last week, Trump instructed commerce and economic officials to study reciprocal tariffs against countries that impose tariffs on US goods, with recommendations due by April 1.
Bullion is viewed as a traditional hedge against rising prices and geopolitical uncertainties.
Spot silver rose by 0.7 per cent to $32.36 an ounce, after hitting on Friday its highest level since October 31, latching on to factors that drove gold to successive record highs. Some analysts suggested investors in the metal may aim to challenge a 10-year high.
Platinum gained 0.6 per cent to $984.98 and palladium jumped 1.7 per cent to $977.99.
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