Rising gold prices due to the decline of the dollar and escalating trade tensions.
Global gold markets witnessed an upward trend on Monday, May 19, supported by a decline in the US dollar index and renewed concerns over trade disputes, following statements by the US Treasury Secretary reaffirming President Donald Trump's threats to impose additional tariffs.
Gold in spot trading rose by 0.4% to reach $3215.62 per ounce, while US gold futures jumped by 1.02% to $3219.60.
This increase comes after a sharp decline in prices last Friday by more than 2%, marking the worst weekly performance since November 2023, due to improved market sentiment following the trade agreement between the US and China.
In a related context, the dollar index fell by 0.3%, enhancing the attractiveness of gold as an investment option for traders using other currencies.
Timothy Watters, Chief Market Analyst at "KCMT Trade," explained that "Moody's credit rating downgrade of the US, and the subsequent decline in risk appetite, brought some momentum back to gold prices."
US Treasury Secretary Steven Mnuchin confirmed in TV interviews on Sunday that the Trump administration is "moving forward with threats to impose tariffs on trading partners who do not show enough flexibility during negotiations."
Gold is sought after by investors as a safe haven during economic and geopolitical turmoil, especially in a global environment of low interest rates.
Other precious metals also saw an upward movement, with silver rising to $32.42 per ounce, platinum climbing to $990.71, and palladium reaching $965.23.
Market participants are awaiting developments in the global economic scene, especially regarding monetary policies and trade negotiations, which are expected to directly impact gold trends in the near future.
