FX.co ★ Gold Hovers Near Four-Week Highs

Gold prices dipped below $3,380 per ounce on Tuesday, yet continued to hover near their peak in almost four weeks, buoyed by robust demand for safe-haven assets. On Monday, gold saw a remarkable 2.8% surge, marking its most significant daily increase since May 6th, as investors responded to mounting trade and geopolitical tensions. US President Donald Trump announced plans to double tariffs on steel and aluminum starting Wednesday, which further exacerbated relationships with trade partners. Concurrently, relations between Washington and Beijing worsened after Trump accused China of breaching a trade agreement with the US. Market participants are now anticipating a possible meeting between President Trump and Chinese President Xi Jinping, as the White House confirmed that a conversation between the two leaders is likely to occur later this week. In another development, Russia and Ukraine engaged in their second round of direct peace talks on Monday after a notable escalation in hostilities, although no headway was made toward resolving the conflict.