Gold Approaches Record as Dollar Drops Amid Ukraine War and Trade Moves
Gold surged as the US dollar weakened, with market participants monitoring the US's efforts to end the Ukrainian conflict and President Donald Trump's trade actions.
Trump announced plans to implement reciprocal tariffs on Thursday, potentially escalating the trade war with foreign partners. Details of the tariffs remain undisclosed.
Meanwhile, Trump agreed to negotiate a ceasefire in Ukraine during a call with Russian President Vladimir Putin, boosting the euro and weighing on the dollar.
Gold has soared this year, setting new highs and approaching $3,000 per ounce. The rally stems from safe-haven demand amid uncertainty over the Biden administration's policies on trade and geopolitical issues.
Central banks and bullion-backed ETFs have increased their holdings, contributing to the surge.
Spot gold gained 0.4% to $2,916.79 per ounce as of 11:37 a.m. in New York. The Bloomberg Dollar Spot Index declined 0.5%. Silver dipped, while palladium and platinum advanced.