Gold Prices Edge Higher Amid Trade Tensions and Economic Data

Gold prices climbed on Monday as the dollar weakened, with investors awaiting further details on U.S. President Donald Trump's reciprocal tariff plans, which could escalate global trade tensions.

Spot gold was up 0.6% at $2,900.47 per ounce, as of 0536 GMT. U.S. gold futures gained 0.4% to $2,912.00.

The dollar index hovered near a two-month low as traders assessed recent weaker-than-expected U.S. economic data.

A weaker U.S. dollar makes bullion more affordable for holders of other currencies.

Gold is being supported by the dollar's weakness and uncertainty over how Trump will engage with major trading partners in enforcing his trade tariff policy, said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.

Trump renewed his tariff threats on Friday, saying that levies on automobiles would be imposed as early as April 2. Last week, Trump instructed commerce and economic officials to study reciprocal tariffs against countries that impose tariffs on U.S. goods, with recommendations due by April 1.

Meanwhile, U.S. Secretary of State Marco Rubio said on Sunday that Ukraine and Europe would be part of any "real negotiations" to end Moscow's war.

"If talks between U.S. and Russian officials improve the odds for a peace deal being reached that ends the war, safe-haven buying demand could wane, which could see gold lose some of its impetus," said Tim Waterer, chief market analyst at KCM Trade.

"But with tariff and inflation talk still a worry for investors, gold could still rally even if safe-haven flows recede."

Bullion is viewed as a traditional hedge against rising prices and geopolitical uncertainties.

Spot silver rose 0.7% to $32.36 an ounce, after hitting on Friday its highest level since October 31, latching on to factors that drove gold to successive record highs. Some analysts suggested investors in the metal may aim to challenge a 10-year high.

Platinum gained 0.6% to $984.98 and palladium jumped 1.7% to $977.99.

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