FX.co ★ Gold Prices Surge On Inflation Concerns

Gold prices rose on Monday to their highest since mid-March, with geopolitical uncertainty, rising Covid-19 cases in China, elevated inflation and the risk of a U.S. recession driving investors to the safety of bullion.

Spot gold rose 0.9 percent to $1,991.68 per ounce, while U.S. gold futures were up 0.7 percent at $1,988.10.

As the Russia-Ukraine war entered the eighth week, Russian forces are said to be re-organizing in eastern Ukraine for a decisive conflict.

Ukraine, for the first time, revealed that it has lost 3,000 soldiers in seven weeks of the Russia Ukraine conflict.

Three new deaths from COVID-19 were reported on Sunday in Shanghai, where most of the city's 25 million residents are still under a strict lockdown.

The Chinese economy slowed sharply in March, with major indicators released earlier today showing slower increases. Retail sales growth turned negative due to the COVID outbreak in many cities.

Rising inflation levels across the globe and elevated expectations of rate hikes by the Federal Reserve clouded the growth outlook for this year, with the Goldman Sachs economics team saying that there is now a 35 percent chance of a U.S recession over the next two years.