Gold prices jumped on Monday as the dollar weakened and trade tensions resurfaced after US Treasury Secretary Steven Mnuchin reiterated President Donald Trump's threat to impose tariffs, boosting demand for gold as a safe haven.

Spot gold rose 0.7 percent to $3,223.55 per ounce by 0215 GMT. U.S. gold futures rose 1.3 percent to $3,228.70.

Gold fell more than 2 percent on Friday, marking its worst week since last November, amid increased risk appetite due to the US-China trade agreement.

The dollar index fell 0.3 percent on Monday, making dollar-denominated gold cheaper for foreign currency holders.

"Moody's downgrade of the US credit rating and the accompanying decline in risk sentiment from the market have restored some momentum to the gold price," said Tim Waterer, senior market analyst at KCM Trade.

US Treasury Secretary Scott Besant said in a televised address on Sunday that Trump would impose tariffs at the same level he threatened last month on trading partners who do not negotiate agreements in good faith.

Gold is a hedge against economic and geopolitical turmoil and is thriving in the face of lower interest rates.

Among other precious metals, spot silver rose 0.5% to $32.42 per ounce, platinum rose 0.3% to $990.71, and palladium rose 0.5% to $965.23.