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23.02.202616:59:09UTC+00Gold Extends Momentum

Gold jumped more than 2% on Monday to trade above $5,210 per ounce, reaching a multi-week high as mounting trade protectionism and rising geopolitical tensions fuelled safe-haven demand. The rally gained momentum after President Trump invoked Section 122 to impose a 15% global surcharge, effectively sidestepping the Supreme Court’s recent constraints on reciprocal tariffs.

This policy shift prompted swift signs of retaliation: the European Union moved to suspend the ratification of US trade agreements, while India delayed its interim trade talks. These trade frictions are unfolding alongside a military buildup in the Middle East, with US–Iran nuclear negotiations stalled ahead of Thursday’s meeting in Geneva.

Although the dollar index held near 97.8, gold drew added support from the return of Chinese buyers after the holiday. With the 10-year US Treasury yield steady around 4.07%, the metal is reinforcing its status as a hedge against a potential breakdown in global trade and growing regional instability.

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