Gold futures climbed 0.6% to $3,363.70 a troy ounce, driven by a weaker U.S. dollar, consistent central bank demand, and heightened market volatility.
Investor interest in gold as a safe-haven asset was bolstered after U.S. courts upheld President Trump’s “reciprocal” tariffs, even as legal appeals continue, according to Tradu.com analyst Nikos Tzabouras.
Demand from central banks remains strong, with China increasing its gold reserves for a seventh consecutive month in May. Meanwhile, hopes for a U.S.-China trade agreement have grown following recent talks that resulted in a preliminary framework. Negotiations with other trade partners may also accelerate in the near term.
However, these positive trade signals could limit gold’s upward momentum, keeping prices within a tight range, Tzabouras notes.
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