Gold prices hit a new record high of $3,400 Monday, as a faltering dollar and worries about a global economic slowdown over rising U.S.-China trade tensions kept safe-haven bullion in demand.
Bullion rose 2% earlier in the session to a record high of $3,395.95. U.S. gold futures rose 2.1% to $3,396.60.
U.S. President Donald Trump's broad tariffs and the uncertainty surrounding his trade policies have roiled global markets and clouded the economic outlook for the world's largest economy, prompting investors to withdraw from U.S. assets.
Meanwhile, China warned countries against striking a broader economic deal with the U.S. at its expense.
This, along with Trump's attacks against Federal Reserve Chair Jerome Powell last week, have weakened the dollar to an over three-year low, making greenback-priced bullion cheaper for overseas buyers.
$3,500 IN SIGHT
"Ongoing concerns on the role of dollar as reserve currency is supporting gold, with prices likely to stay supported. Risk off sentiment as gauged by falling equity markets is also supporting the yellow metal. We look for a move to $3,500 over the coming months," said UBS analyst Giovanni Staunovo.
Gold, considered a hedge against global instability, has gained more than $700 since the start of 2025. Bullion had taken 12 years to rise from $1,000/oz in 2008 to $2,000/oz.
"The next potential milestone for gold could be around the $3,500 level, though positioning may appear crowded in the near term and technical indicators suggest near-term overbought conditions," said IG market strategist Yeap Jun Rong.
Spot silver added 0.5% to $32.74 an ounce, platinum gained 0.4% to $971.10, while palladium fell 0.3% to $958.93.