Spot gold rose by 2.7% to $3,417.62 an ounce, briefly touching a peak of $3,430.18 earlier in the day. U.S. gold futures closed 2.9% higher at $3,425.30.
The dollar fell to a three-year low as investor confidence in the U.S. economy waned, partly due to President Trump’s comments about Federal Reserve Chairman Jerome Powell. A weaker dollar makes gold more attractive to holders of other currencies.
Trade tensions between the U.S. and China have also fueled the rise in gold prices, with China accusing the U.S. of misusing tariffs and advising other countries against striking trade deals that could favor the U.S. over them.
David Meger, director of metals trading at High Ridge Futures, mentioned that while gold may see occasional pullbacks and profit-taking, the overall trend remains positive. Gold has gained more than $700 since the beginning of 2025, hitting multiple record highs and pushing past $3,300 last week.
Jim Wyckoff, a senior analyst at Kitco Metals, noted that large daily price movements suggest that gold's bullish run may be nearing its peak, both in terms of time and price.
In other metals, spot silver remained steady at $32.60 an ounce, platinum dropped by 0.6% to $961.61, and palladium decreased by 3% to $934.25.
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