Gold Firms on Weaker Dollar, Ukraine Peace Uncertainty
Gold prices edged up on Monday, helped by a weaker dollar, while a delay in finding peace in Ukraine and concerns over the U.S. tariff policy fuelled safe-haven demand for the metal. Spot gold added 0.1% to $2,860.25 an ounce by 0750 GMT, while U.S. gold futures rose 0.8%. The dollar index fell 0.3% from a more than two-week high hit in the previous session.
- Geopolitical uncertainty, such as the stalled Ukraine peace talks and rising tensions over trade policies, may continue to drive investors towards safe-haven assets like gold, potentially supporting prices in the coming weeks.
- As interest rates remain elevated, the allure of gold as a hedge against inflation will likely wane, making its performance more sensitive to changes in monetary policy and economic growth.