Gold price rises 2.8% to $3,370/oz as uncertainty increases; safe-haven appeal strengthens.

From Investing.com: 2025-06-03 04:31:00

Gold prices surged over 2.8% to reach $3,370 per ounce, hitting a three-week high amid escalating geopolitical and economic tensions. The increase was supported by a drop in the US Dollar Index, boosting gold’s appeal as a safe-haven asset. Uncertainty around global trade policy intensified following Trump’s tariff hike announcement, driving investors towards gold as a strategic store of value. The focus now shifts to the US jobs report, which may impact interest rate expectations and XAU/USD volatility.

The euro gained 0.84% against the US dollar as the DXY weakened, with USD projected to fall further against safe-haven currencies. China dismissed US trade accusations, promising countermeasures, while US officials seek diplomatic resolution. EUR/USD fell initially but may rise above 1.14500 with weak US JOLTS Job Openings data, while strong figures could push it below 1.13500.

The British pound rose 0.66% against the USD amid resurging trade tensions. President Trump’s tariff plans sparked backlash from China, heightening global trade concerns. The pound found support from optimism around the UK economy, with improved growth forecasts. Inflation pressures persist, affecting consumer behavior and monetary policy expectations. GBP/USD may fluctuate based on US JOLTS Job Openings data release, potentially pushing the pair towards 1.34500 or 1.35600 depending on the results.



Read more at Investing.com: Gold Price Surges on Trump Tariff Threat, Fed Rate Cut Speculation