Gold rose — after falling by 2% last week — as an increase in geopolitical and trade tensions revived demand for haven assets.
Bullion climbed as much as 0.8% in Asia after Ukraine staged a dramatic series of drone strikes across Russia on Sunday, hitting airfields as far away as eastern Siberia.
Around the same time, Moscow launched one of its longest attacks against Kyiv, ahead of crucial peace talks this week.
US President Donald Trump also stoked more worries over global trade at the weekend, vowing to double import tariffs on foreign steel and aluminum to 50%, with Canada’s industry minister warning that it would retaliate.
There are also signs the US-China truce is at risk after Trump accused Beijing of reneging on an agreement reached last month.
See also: Gold edges lower on stronger dollar ahead of US labour figures
All of that is restoring some of gold’s haven appeal, which has ebbed somewhat since it hit a record high above US$3,500 an ounce in April.
The precious metal is still up more than a quarter so far this year though, with Goldman Sachs Group saying last week it would remain a hedge against inflation in long-term portfolios, along with oil.
Spot gold rose 0.7% to US$3,313.52 an ounce as of 8.12am in Singapore. The Bloomberg Dollar Spot Index dipped 0.1%. Silver, platinum and palladium all edged higher.
See also: Gold falls as traders await US data for clues on tariff impact
Looking ahead, there are a slew of labour market indicators due this week — including the May employment report — which will help to steer US monetary policy.
Chart: Bloomberg
