US gold futures rose 0.8% to $1,527.40 an ounce. "We have to acknowledge that these global growth worries are still there... the German data and data from Europe were weaker than expected. So...we're seeing fundamental support for gold," Julius Baer analyst Carsten Menke said. The weaker-than-expected economic readings added to investor worries over the effect of the US-China trade dispute on the world economy, denting appetite for riskier assets.
Over the weekend, the US Trade Representative's office issued a statement characterising two days of talks with China as "productive." This comes after Chinese officials unexpectedly cancelled a visit to US farms following their negotiations in Washington. Adding to global geopolitical risks, tensions remained elevated in the Middle East after Washington ordered more troops to the Gulf region to strengthen Saudi Arabia's air and missile defences, following an attack on the kingdom's oil facilities.
Meanwhile, palladium surged to a all-time high of $1,664.34 an ounce. Palladium has risen more than 8% or about $125 so far this month. Silver gained 2.2% to $18.37 per ounce and platinum jumped nearly 1% to $954.87.