Gold climbed back above $2,900 an ounce, recovering from recent losses as global market turmoil slowed. Investors remain cautious about the US economic outlook, especially after President Donald Trump’s trade policies raised recession concerns.
Despite Monday’s dip, gold—traditionally a safe-haven asset—has surged 11% this year, setting new records. The rally is fueled by:
✅ Uncertainty from Trump’s policies
✅ Central bank purchases
✅ Speculation of further Fed rate cuts
Lower interest rates tend to boost gold prices, as they reduce the appeal of yield-bearing assets.
💰 Gold ETFs Gain Despite Weak Physical Demand
While demand for physical gold is soft in India and China, gold-backed ETFs have seen strong inflows, reaching their highest level since December 2023.
📊 Price Outlook
Analyst Suki Cooper (Standard Chartered) notes that gold lacks a strong physical demand floor but expects new highs this year, supported by ETF inflows.
As of 7:30 a.m. in London, spot gold rose 0.4% to $2,900.78, while the Bloomberg Dollar Index fell 0.2%. Silver and palladium also gained, while platinum remained steady.