Gold: XAU Extends Momentum.

Gold surged over 2% to trade above $5,210 per ounce on Monday, hitting a multi-week peak as a convergence of trade protectionism and heightened geopolitical risk drove safe-haven inflows. The rally accelerated after President Trump's move to implement a 15% global surcharge under Section 122, bypassing the Supreme Court's recent restriction on reciprocal tariffs. This policy pivot triggered immediate retaliatory signals, with the European Union proposing a halt to US trade deal ratifications and India postponing interim negotiations. These trade frictions are compounded by a military buildup in the Middle East as US-Iran nuclear talks reach an impasse ahead of Thursday's meeting in Geneva. While the dollar index held at 97.8, gold found additional support from the return of Chinese buyers following the holiday. With the 10-year Treasury yield steadying at 4.07%, the metal is capitalizing on its role as a hedge against the potential breakdown of global trade and regional stability.