2025.05.0509:31:00UTC+00Gold Rallies On Haven Demand

Gold rallied toward $3,300 per ounce on Monday as the U.S. dollar continued to struggle around the 100 mark amid tariff-related uncertainty and ahead of the Federal Open Market Committee (FOMC) meeting, scheduled for May 7.

Geopolitical risks also revived safe-haven demand, with Israel's security cabinet reportedly approving a plan to capture all of the Gaza Strip and remain there for an unspecified amount of time.

Spot gold jumped 1.4 percent to $3,286.51 per ounce in early European trade, while U.S. gold futures were up 1.9 percent at $3,304.96.

The dollar remained pinned down following mixed signals on tariffs from U.S. President Donald Trump.

Trump said aboard Air Force One that his administration could strike trade deals with some countries as soon as this week, without specifying any countries.

"We're negotiating with many countries, but at the end of this, I'll set my own deals - because I set the deal, they don't set the deal."

Trump also said he is willing to lower tariffs on China at some point, but insisted he had no plans to speak with Chinese President Xi Jinping this week.

In another development, Trump has announced plans to impose a 100 percent tariff on foreign films, claiming that Hollywood is undergoing a "very fast death" due to overseas competition.

In economic news, Fed and BoE rate decisions along with U.S. service sector activity data may garner investor attention this week.

Despite heightened economic uncertainty, the U.S. Federal Reserve is widely expected to stay in "wait-and-see" mode and keep its key interest rate steady at the end of its two-day meeting on Wednesday.

The Bank of England is seen cutting interest rates by 25 basis points to 4.25 percent on Thursday.

Traders will monitor the vote split and the Bank's press conference closely to assess the potential for future easing.