Safe haven gold hits new high, dollar weakens against peers

LONDON

Stocks rose on Monday as trade war fears were tempered by Donald Trump's announcement of tariff exemptions for electronics, although the dollar weakened and safe-haven gold hit a fresh record amid fears the relief would be short-lived.

"After a period of chaotic price action, chinks of light poke through the forest canopy providing a much-needed guide to the entities that price risk and liquidity for a living, which in turn, may see liquidity conditions improve and a relative calm return to markets," said Chris Weston at Pepperstone.

As well as fuelling a panic on stock markets, the uncertainty caused by Trump's trade policy has also hit the dollar amid concerns about the outlook for the world's top economy.

The greenback extended losses against its major peers on Monday, with the euro at a three-year high and the Swiss franc at its strongest in 10 years.

The U.S. dollar dropped to 142.68 Japanese yen from 143.91 yen. 

Treasuries also remain under pressure amid worries that China and other nations could dump their vast holdings, which could call into question the U.S. position as a rock-solid safe haven.

And gold, a go-to asset of safety in times of turmoil, hit a new peak of $3,245.75 on Monday, helped by the weaker dollar.

In other trading early on Monday, U.S. benchmark crude oil dropped 10 cents to $61.40 per barrel, and Brent crude, the international standard, lost 10 cents to $64.66 per barrel.

Concerns about the impact of the measures saw Boston Fed chief Susan Collins tell the Financial Times that officials would "absolutely be prepared" to deploy its various tools to help stabilise the financial markets if the need arose.