Gold prices rose back above $2,900 per ounce on Monday, supported by a weaker dollar and fears of an impending trade war as US President Donald Trump threatened reciprocal tariffs, reports Reuters.
Spot gold was up 0.6 per cent at $2,900.44 as of 1134 GMT after hitting a record high of $2,942.70 last week. US gold futures gained 0.4 per cent to $2,912.10.
The US dollar hovered near a two-month low, making bullion less expensive for buyers holding other currencies.
"Gold is still benefiting from investors looking for safe-haven assets amid concerns of a tariffs and trade war," UBS analyst Giovanni Staunovo said.
"We continue to see upside for gold, with the yellow metal expected to rise to $3,000, benefiting also from ongoing central bank demand."
On Friday Trump kept alive his drumbeat of tariff threats, saying levies on automobiles would be coming as soon as April 2. It was the latest in a litany of trade actions he has unveiled since taking office for the second time.
Meanwhile, US Secretary of State Marco Rubio said on Sunday that Kyiv and Europe would be part of any "real negotiations" to end Moscow's war in Ukraine.
"Progress in the ongoing Russia-Ukraine peace talks could dilute some of gold's year-to-date gains, though the precious metal still enjoys enough tailwinds to keep spot prices supported," said Exinity Group Chief Market Analyst Han Tan.
Some Federal Reserve officials are set to speak later in the day, and market participants will be on the watch for any clues on the path for US interest rates.
Spot silver rose 1 per cent to $32.50 an ounce after hitting its highest level since October 31 on Friday.
