Spot gold prices climbed on Monday as renewed trade tensions and a weaker dollar spurred safe-haven demand among investors. Gold is trading at $3,237.16 per ounce, up $34.55, reversing some of last week’s losses that followed a brief period of risk-on sentiment due to easing U.S.-China relations. The rebound was further fueled by Moody’s downgrade of the U.S. sovereign credit rating, which heightened concerns over fiscal stability and pushed investors toward physical bullion. Analysts noted that despite the recent correction, gold remains up more than 23% year-to-date, supported by robust central bank buying and persistent inflation worries.
Silver spot prices also saw modest gains, trading at $32.36 per ounce in early action, reflecting a slight increase from the previous day. The metal continues to consolidate around the $32 level, with technical support holding firm amid moderate trading volumes. Market fundamentals remain supportive, with industrial demand for silver expected to hit a new record this year, particularly from the green energy sector. Physical investment demand is forecast to rise by 3% in 2025, as Western investors adjust to higher price levels and profit-taking slows. The gold-to-silver ratio remains historically elevated, suggesting potential upside for silver should industrial and investment demand continue to strengthen.
