Gold gained above $1,200 per ounce on Monday as the dollar weakened after the United States and Mexico struck an agreement that lowers trade tensions. Major currencies gained against the US dollar, which has been a safe haven from months of trade tensions.
Spot gold gained 0.3 percent at $1,208.92 per ounce by 1:37 p.m. EDT (1737 GMT), earlier peaking at $1,212.38, a two-week high. US gold futures for December delivery settled up $2.70, or 0.2 percent, at $1,216 per ounce. "The NAFTA agreement is helping the (platinum group metals) a little bit. The PGMs seem to be pulling on gold and silver, too," said Walter Pehowich, executive vice president of investment services at Dillon Gage Metals.
The United States and Mexico agreed to overhaul the North American Free Trade Agreement (NAFTA), putting pressure on Canada to agree to the new terms on auto trade and other issues to remain part of the three-nation pact. An agreement could ease concerns about an escalation in global trade tensions.
Meanwhile, spot silver gained 0.4 percent at $14.86 per ounce. Earlier it hit $14.92, its highest since Aug. 15. Platinum increased 1.3 percent at $800.90 per ounce, earlier reaching close to a two-week high at $805.30. Palladium gained 1.1 percent at $946.40 per ounce, earlier hitting $949.75, its highest since July 14.
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