Gold rises to five-week high on trade war, geopolitical woes
Gold prices rose to a five-week high on Monday as the threat of a trade war between the United States and China weighed on the dollar and equity markets, driving investors to seek refuge in safe-haven assets.
Spot gold rose 0.1 percent to $1,348.66 per ounce at 0419 GMT. Price rose to as much as $1,350.76 per ounce, the highest since Feb. 19.
Gold rose 2.6 percent last week, its biggest weekly gain since September 2017.
U.S. gold futures for April delivery fell 0.1 percent to $1,348.80 per ounce.
Fears of a trade war between the U.S. and China battered Asian shares again on Monday, keeping the safe-haven yen near a 16-month peak. The dollar index, which measures the greenback against six major currencies, was down 0.1 percent at 89.39.
Last week U.S. President Donald Trump signed a memorandum that could impose tariffs on up to $60 billion of Chinese goods, while China declared plans to levy additional duties on up to $3 billion of U.S. imports in response to U.S. tariffs on steel and aluminium.
"It's hard not to stay long gold with geopolitical risk now registering in the danger zone as an escalation of a trade war and John Bolton's appointment unambiguously raised short-term market risks to a whole new level," Stephen Innes, APAC trading head at OANDA, said in a note.