On Monday, gold reached an unprecedented peak as the dollar plummeted to its lowest level in three years. Concurrently, escalating trade tensions between the United States and significant trading partners heightened recession anxieties, prompting investors to gravitate towards this safe-haven asset. Gold prices have reached unprecedented levels, driven by a depreciation of the dollar and heightened trade war tensions, which have intensified fears of a recession and prompted investors to seek refuge in this safe-haven asset. The United States is contemplating the imposition of tariffs on imports of critical minerals, which could exacerbate tensions in global trade relations. In the face of escalating prices, the demand for physical gold in India has exhibited a lackluster response, whereas premiums have maintained stability in the Chinese market.

On Sunday, a Boeing aircraft designated for a Chinese airline returned to the manufacturer’s U.S. production facility, a casualty of the reciprocal tariffs initiated by U.S. President Donald Trump as part of his broader trade strategy. Last week, Trump initiated an investigation into the possible implementation of new tariffs on all imports of critical minerals to the U.S., marking a significant intensification in his ongoing conflict with international trade partners and an effort to exert pressure on the dominant industry player, China. On Friday, White House economic adviser Kevin Hassett indicated that President Trump and his team were contemplating the possibility of dismissing Federal Reserve Chair Jerome Powell. This consideration underscores the potential implications for the central bank’s autonomy and the broader global financial landscape.

Spot gold experienced an increase of 1%, reaching $3,361.53 per ounce as of 0037 GMT. Gold futures in the United States increased by 1.4%, reaching a price of $3,375.90. The dollar index has reached a three-year low, thereby enhancing the appeal of gold for holders of alternative currencies. Gold, historically regarded as a safeguard against political and economic volatility as well as inflationary pressures, has appreciated over 27% since the beginning of the year. Last week, the appetite for physical gold in India was subdued due to a sharp increase in prices, which dampened buying activity, whereas premiums remained stable in the leading consumer market of China. Spot silver experienced a modest increase of 0.1%, reaching $32.63 per ounce. In contrast, platinum saw a slight rise of 0.2%, climbing to $969.20, whereas palladium recorded a decrease of 0.3%, settling at $959.20.