Gold prices climbed 1.6% to trade above $3,387 per ounce as demand from China picked up following the reopening of markets after a five-day holiday.
The metal has advanced more than 25% so far this year and earlier touched a record high near $3,500 in April.
Analysts attribute the rally to gold’s safe-haven appeal amid ongoing market uncertainty, supported by a combination of trade tensions stemming from U.S. policy, renewed speculative buying in China, and continued purchases by central banks.
With momentum in place, investors are now focused on the upcoming Federal Reserve interest rate decision, which could influence short-term direction in gold prices.