WASHINGTON (dpa-AFX) - A weaker dollar and falling bond yields lifted bullion to a new record high above $3,100 per ounce on Monday.
Geopolitical tensions also remained on investors' radar following U.S. President Donald Trump's warning of possible tariffs on Russian buyers and bombings on Iran.
Spot gold jumped 1.2 percent to $3,121.71 per ounce in European trade, while U.S. gold futures were up 1.3 percent at $3.154.41.
The dollar traded weak and Treasury yields fell amid much uncertainty about the final scope and level of U.S. reciprocal tariffs on many trading partners that will take effect globally on April 2.
Trump said on Sunday that reciprocal tariffs will include all nations, not just a smaller group of 10 to 15 countries with the biggest trade imbalances.
A slew of tariffs enacted by the Trump administration will go into effect on Wednesday - including a 25 percent levy on 'all cars that are not made in the United States.'
In a wide-ranging Saturday interview with NBC News, Trump said he 'couldn't care less' if foreign automakers raise their prices due to these new tariffs.
Investment bank Goldman Sachs has placed the probability of a U.S. recession at 35 percent, up from its previous forecast of 20 percent, citing declining business and consumer confidence, weakening economic fundamentals, and indications that the White House may be willing to endure short-term economic strain to achieve policy objectives.
On the geopolitical front, Trump said he would impose secondary tariffs of 25-50 percent on all Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.
He also threatened Iran with 'bombing' if it fails to agree to a nuclear deal.
Following Trump's threat, Iran has placed its missiles in ready-to-launch mode within underground facilities across the country, designed to withstand airstrikes.
In economic news, markets look forward to a slew of U.S. economic data this week, including reports on manufacturing, service sector activity, trade and job openings.
The highly anticipated March jobs report will be released on April 4 and any outcome below the 140,000-gain expected would likely add to recession fears.
Fed Chair Jerome Powell is scheduled to speak on the economic outlook on Friday. Other central bank speakers include Michael Barr and Christopher Waller.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
