Gold Gains Value as Dollar Declines and Trade Conflicts Reemerge

Gold prices opened the week with notable gains, supported by a weaker U.S. dollar and renewed global trade tensions, which increased demand for the precious metal as a safe-haven asset amid growing economic uncertainty.

Spot gold rose by 0.7% to $3,223.55 per ounce as of 02:15 GMT, while U.S. gold futures climbed 1.3% to $3,228.70, according to market data.

This recovery follows a sharp decline last week, where gold dropped by more than 2% on Friday — marking its worst weekly performance since November — as investor appetite shifted toward riskier assets amid progress in U.S.-China trade negotiations.

The U.S. dollar index fell by 0.3%, making dollar-denominated gold cheaper for holders of other currencies. At the same time, escalating concerns over trade policies and potential tariff actions contributed to renewed interest in gold as a hedge against market volatility.

Gold also found support from recent credit rating downgrades of the U.S., which triggered a risk-off sentiment in financial markets and drove investors back to safe assets.

Other precious metals also saw gains:

Silver rose 0.5% to $32.42 per ounce.Platinum increased 0.3% to $990.71.Palladium advanced 0.5% to $965.23.

Gold continues to serve as a strategic hedge amid economic and geopolitical instability, benefiting from ongoing expectations of lower interest rates and broader market uncertainty.