Fundamental Comment

Gold on the rise with the start of the second quarter

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Gold prices rose on Monday, the first session of the second quarter of the year, amid retreat in the U.S. dollar and escalating market tensions over the re-ignited global trade war.

The yellow metal recorded a high of $1332.55 per ounce, after opening at $1325.62 an ounce.

Gold prices fell last week from a six-week high yet came out slightly positive in the first quarter.

The current stability of gold levels is due to haven demand on the metal in the wake of the of the elevating fears in the financial markets due to escalating tensions between China and the United States.

China has imposed new tariffs on 128 US products in retaliation to the U.S. tariffs on imported steel and aluminum.

On the other hand, gold found support after the Federal Reserve's latest monetary policy meeting, which showed stable expectations of the central bank concerning three rate hikes this year while markets were waiting for four rate hikes.

The dollar index fell to a low of 89.53 today, compared to the session’s opening at 89.66.

Later in the day, the U.S. will release its ISM manufacturing PMI for March that may show an ease in expansion to 60.1 from 60.8 in February.

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