Gold prices held steady in Asian trading on Monday after modest gains last week as the dollar remained near a four-month low amid uncertainties around U.S. trade policies.
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- Gold prices rise to near one-month high on hopes of interest rate cut
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- Gold Futures Rise as December Fed Rate Cut Priced In
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- Federal Reserve ready to cut interest rates by 25 basis points
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Investors also analyzed last week’s jobs report and the Federal Reserve Chair’s comments to gauge the central bank’s interest rate outlook.
Spot Gold was largely unchanged at $2,911.21 per ounce, while Gold Futures expiring in April gained 0.1% to $2,918.27 an ounce by 02:05 ET (06:05 GMT).
Trump refrains from recession prediction amid tariff worries
In a recent interview on Fox News’ “Sunday Morning Futures,” President Donald Trump refrained from forecasting whether the U.S. might experience a recession in 2025 amid escalating trade tensions.
Inflation
Trump’s administration has imposed 25% tariffs on imports from Mexico and Canada, with additional measures targeting China. These policies have raised concerns about potential economic slowdowns and rising inflation.
The tariffs, particularly those on steel and aluminum imports from Canada and Mexico set to take effect this Wednesday, have unsettled investors, leading to heightened market volatility.
In response to these uncertainties, investors are increasingly turning to safe-haven assets like gold. The precious metal recently surged to record highs.
Gold prices also remained supported as the US Dollar Index hovered near a four-month low it touched last week.
The dollar’s decline against major currencies makes gold, priced in dollars, more attractive to investors.
Other precious metals were largely subdued. Platinum Futures were steady at $966.25 an ounce, while Silver Futures rose 0.3% to $32.943 an ounce.
Investors mull over jobs data, Powell comments for Fed rate clues
Economic data released on Friday reflected a mixed picture as the U.S. economy added 151,000 jobs in February, slightly below expectations, and the unemployment rate edged up to 4.1%.
The weaker-than-anticipated data bolstered expectations of more rate cuts in 2025.
However, Fed Chair Powell indicated that the central bank would maintain a patient stance on interest rates, acknowledging that the U.S. economy remains in a good place despite elevated uncertainties.
He said the Fed was cautiously assessing Trump’s recent economic policy changes, including tariffs and federal worker layoffs.
Copper ticks lower on weak Chinese data; weak dollar caps losses
Copper prices were marginally lower, in line with the broader cautious mood.
Data on Sunday showed that China’s deflationary pressures intensified in February, as both consumer and producer prices declined more than anticipated amid weak consumer spending.
The deflationary trend in China reinforces concerns about weakening industrial activity, making copper less attractive to investors and potentially driving prices lower.
Benchmark Copper Futures on the London Metal Exchange edged 0.1% lower to $9,571.05 a ton, while Copper Futures expiring in April fell 0.3% to $4.6945 a pound.
