Gold rose after rising to $3,000 an ounce on Friday, as investors weigh the news that the US government managed to prevent a shutdown amid continued concerns about economic growth, Bloomberg reports, UNN writes.
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Bullion traded at around $2,990 an ounce after falling from an all-time high of $3,005 an ounce, after the US Senate passed a Republican spending plan that paved the way for approval of a government funding package.
Markets are still watching the fallout from US President Donald Trump's aggressive trade program, which saw the S&P 500 index begin to correct last week before rebounding on Friday. It ended "a week-long drama, including the implementation of the US leader's latest tariff threats, calls for recession and geopolitical negotiations on the future of Ukraine," the publication writes.
Uncertain prospects and a related appetite for safe-haven assets have helped boost the price of bullion by 14% this year, continuing the metal's strong annual growth in 2024. Banks are increasingly confident that further gains await them, outlining targets that would have seemed astonishing to many investors just a few quarters ago. Last week, Macquarie Group forecast prices would rise to US$3,500 an ounce in the second quarter, while BNP Paribas SA raised its forecast, showing average prices well above US$3,000.
Investors will also reportedly be watching a series of central bank meetings this week, as Trump's "trade volleys" test politicians' nerves. In the US, Federal Reserve Chairman Jerome Powell faces the difficult task of reassuring investors that the economy remains on a solid footing and that policymakers are ready to intervene with support.
Spot gold rose 0.2% to $2,988.58 an ounce at 8:22 a.m. in Singapore after rising 2.6% last week. The Bloomberg Spot Dollar Index was unchanged. Silver was little changed, while platinum and palladium fell.
Trade tensions push gold to a historic record of $300014.03.25, 10:19 • [views_24350]
