Gold climbs to a one-month high as the dollar and Treasury yields decline.
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Gold futures were sharply higher early Monday, rising to the highest in a month as the dollar and treasury yields weakened.
Gold for August delivery was last seen up US$49.50 to US$3,407.80 per ounce, the highest since June 18.
The rise comes as the dollar continues to weaken amid U.S. President Donald Trump's trade battles and worries that he is looking to take control over the country's monetary policy. He has threatened to fire Federal Reserve Chair Jerome Powell in a bid to force the central bank to lower interest rates even as inflation remains a concern.
"Rumors circulated on Wednesday, citing that Trump was likely to soon fire Fed Chair Jerome Powell. Markets moved accordingly, with the greenback turning sharply weaker and front-end yields also dropping. The moves were reversed when Trump announced he has no current plans to oust the Fed Chair, but the event got markets thinking about risks of losing an independent Fed," Saxo Bank noted.
The dollar was last seen sharply lower, with the ICE dollar index down 0.62 points to 97.86. Treasury yields also weakened, with the U.S. two-year note last seen paying 3.854%, down 2.6%, while the yield on the 10-year note was down 5.7 points to 4.366%.
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