Gold spikes 1.5% as oil jumps on US-China trade war escalation fears

Safe-haven assets surged Monday as renewed US-China trade tensions rattled global markets. Gold futures climbed 1.5% to $2,052 per ounce, the highest level in three weeks, while WTI crude oil jumped 2.1% to $78.40 per barrel on supply disruption concerns. The commodity rally coincided with a broad USD selloff, with the dollar index dropping 0.6% to 103.95. Equity futures tumbled, with S&P 500 futures down 1.2%, reinforcing the risk-off environment. Currency markets reflected the defensive positioning, as USD/JPY fell 1.2% to 153.70 and EUR/USD rose 0.8% to 1.0935. The postponement of the Trump-Xi call and China's rare earth export restrictions have intensified market fears of prolonged trade disputes. Technical indicators suggest gold could test $2,075 resistance if tensions persist. Forex traders should monitor commodity movements closely as they often signal broader risk sentiment shifts affecting major currency pairs.