NEW YORK: Gold prices rose sharply in Monday trading as the U.S. dollar weakened, lifting demand for the metal in overseas currencies. Spot gold climbed 1.2% to $5,163.60 an ounce by 02:10 GMT, reaching its highest level in more than three weeks. U.S. gold futures for April delivery were up 2% at $5,184.90. The move extended a recent advance in bullion as investors tracked a softer greenback and shifting risk sentiment across global markets.
The rally in gold came alongside a broader gain in precious metals. Spot silver jumped 3.1% to $87.10 an ounce, also marking a more than two-week high. The upswing in bullion prices coincided with a pullback in the dollar, which can support commodities priced in the U.S. currency by making them cheaper for buyers using other currencies. Trading volumes built through Asia and into early European hours as investors repositioned after late-week volatility.
The latest moves followed heightened attention on U.S. trade policy after a Supreme Court decision that struck down a wide swath of emergency tariffs. Markets also digested subsequent public comments from President Donald Trump on tariffs tied to U.S. trade deals. The developments were closely watched for their impact on currencies and risk assets, with gold among the instruments that benefited as the dollar retreated and investors focused on policy signals.
Market reaction and currency moves
Gold reversed course on Tuesday, slipping from the more than three-week high as investors took profits after the previous session’s jump. Spot gold was down 1.2% to $5,167.28 an ounce by 05:38 GMT, snapping a four-session winning streak. U.S. April gold futures fell 0.7% to $5,187.40. The pullback came as the dollar firmed, a combination that typically weighs on bullion by making it more expensive in non-dollar terms.
Other precious metals were mixed as gold eased. Spot silver fell 0.9%, while platinum was down 0.5% and palladium was up 0.4% in early Tuesday pricing. The day-to-day swings followed a strong Monday advance that pushed gold above $5,160 and lifted silver above $87, underscoring how currency moves and shifts in positioning can produce sharp changes across the metals complex.
Federal Reserve focus and rate backdrop
Investors also tracked U.S. monetary policy signals as markets assessed the interest-rate outlook. Federal Reserve Governor Christopher Waller said he could support holding rates steady at the March meeting if incoming labor market data showed improvement. Rate expectations matter for gold because the metal does not pay interest, and changes in yields and the dollar can influence the relative appeal of holding bullion versus interest-bearing assets.
Gold has been highly sensitive to dollar swings in recent sessions, with Monday’s climb coinciding with a clear dip in the U.S. currency and Tuesday’s retreat arriving as the dollar strengthened. The latest quotes left spot gold near $5,170 an ounce after reaching a more-than-three-week high a day earlier, while April futures remained around the $5,180 area. Traders continued to monitor policy developments and day-to-day market pricing across metals and currencies. – By Content Syndication Services.