Gold contract prices achieved significant rises during the early trading of the week on Monday, after the precious metal suffered sharp weekly losses of about 2.7% last week, which ended on February 28, thus halting a series of weekly gains that lasted for eight consecutive weeks.
In this regard, gold prices found strong support due to the decline of the US dollar index in major currency trading today, which boosted the revival of investor demand for gold among foreign currency holders, apart from the dollar, as one of the most popular commodities priced in greenbacks.
At the same time, peace talks have not yielded any new developments regarding a ceasefire and ending the war between Russia and Ukraine so far, especially after US President Donald Trump’s meeting with his Ukrainian counterpart Zelensky ended in disaster last Friday; this has strengthened demand for gold as a safe haven.
Gold also received support from the increase in trade tensions ignited by new US policies; US Commerce Secretary Howard Lutnick said yesterday, Sunday, that tariffs on Canada and Mexico will come into effect on Tuesday,
But he clarified that Trump will decide whether to adhere to the planned 25% level or not. At the same time, Donald Trump indicated that he would impose an additional 10% tariff on Chinese goods next Tuesday.
Current Gold Prices
Regarding today's trading, spot gold prices recorded an increase of about 0.40% to $2,869.33 per ounce, and futures gold contracts – for April delivery – jumped by 1.06% to nearly $2,878.69 per ounce.
