Gold reached an all-time high and was on track for its largest quarterly gain in more than 38 years on Monday.
This surge was driven by worries over US President Donald Trump's tariff policies, which are seen as escalating the global trade war and potentially leading to an economic slowdown, increasing demand for gold, report Reuters.
Spot gold jumped 1.1% to $3,116.82 an ounce, as of 0638 GMT, after hitting an all-time high of $3,128.06 earlier. US gold futures was up 1.1% to $3,148.00.
Gold, traditionally seen as a hedge against political and economic uncertainties, has risen over 18% so far this quarter, its biggest quarterly gain since September 1986.
Interest rate cut bets, central bank buying and exchange-traded fund (ETF) demand are the other factors that have supported the rally. The rapid price rise prompted multiple banks to increase their 2025 price forecasts.
The dollar index eased 0.2%, making greenback-priced gold less expensive for buyers holding other currencies.
"Markets' anxiety levels have been ramping up ahead of the reciprocal US tariff announcements, which is keeping gold in high demand as a defensive play," KCM Trade chief market analyst Tim Waterer said.
"If the tariff announcements this week are not as severe as feared, then the gold price could start to backtrack as profit-taking from the highs may be triggered."
Bd-pratidin English/ Afia
