Investing.com - Gold prices pushed higher on Monday boosted by the softer dollar and in escalation in trade tensions between the U.S. and China, which underpinned safe haven demand for the precious metal.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange were last up by $14.30, or around 1.1%, to $1,341.60 a troy ounce at 10:57AM ET (15:57GMT).
Market participants continued to focus on the escalation of trade tensions at the beginning of the week. China announced Monday that it is increasing tariffs by up to 25% on certain U.S. imports in response to U.S. duties on imports of aluminum and steel.
The move intensified trade tensions between the world's two largest economies, which investors fear could escalate into a full blown trade war and deal a blow to the global economy.
Looking ahead, the Trump administration this week will likely turn up the volume as it reveals its list of Chinese imports targeted for U.S. tariffs to punish Beijing over technology transfer policies, a move expected to further intensify the strain between the world's two largest economies.
Investors seek out gold as a store of value during times of political or economic uncertainty.
Meanwhile, the drop in the dollar on Monday also supported gold prices.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last down 0.21% to 89.56.
A weaker dollar makes dollar-denominated commodities cheaper for holders of other currencies.
Trade volumes looked likely to remain low on Monday with markets in Europe shut for the Easter holiday.
Elsewhere in metals trading, silver gained 2.26% to $16.635 a troy ounce by 10:58AM ET (15:58GMT), platinum rose 0.50% at $937.30 a troy ounce, palladium traded down 0.73% to $936.95 a troy ounce, while copper gained 1.27% to $3.063 a pound.