Gold Hits $3,400 As US Dollar Weakens, Trade Uncertainty Grows

Gold prices (XAU/USD) reached an all-time high of $3,404 per ounce in pre-market trading on Monday, driven by a weakening U.S. dollar and growing uncertainty over U.S. President Donald Trump’s trade policies. 

Meanwhile, the U.S. Dollar Index (DXY), which measures the dollar against a basket of six major currencies, fell to 98.30, its lowest level since March 2022, in pre-market trade on Monday.

This record surge in gold’s price represents a 29.67% increase since the start of 2025, highlighting its appeal during times of economic instability. 

Gold stocks also saw significant gains in pre-market trade on Monday. Barrick Gold’s (GOLD) stock rose more than 3%, and Newmont (NEM) shares gained 2.5%. 

Meanwhile, Agnico Eagle Mines (AEM) and Gold Fields (GFI) shares jumped 2.8% each. 

The SPDR Gold Trust (GLD), which tracks gold bullion prices, was up 2.1%.

The weakening of the U.S. dollar has been linked to Trump’s back-and-forth tariff policies, which have dented confidence in the U.S. economy. 

Last week, the World Trade Organization (WTO) cut its global trade forecast for 2025, predicting a 1.5% contraction, the worst since the COVID-19 pandemic. 

IMF Managing Director Kristalina Georgieva also warned that global trade uncertainty is “literally off the charts” and announced that the IMF would revise its global growth forecasts downward. However, the IMF does not expect a full recession.

Over the weekend, Chicago Federal Reserve President Austan Goolsbee warned that U.S. economic activity could “fall off” by the summer due to the ongoing impact of tariffs.

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