Gold prices remained largely flat on Monday, with investors closely watching for clarity on Trump’s tariffs ahead of a key April 2 deadline. Spot gold held at $3,026.85 per ounce by 1131 GMT, while U.S. gold futures edged up 0.4% to $3,032.40. The metal’s stability was driven by a weaker U.S. dollar and broader economic uncertainty. The slight decline in the U.S. dollar down 0.1% against major currencies on the day and 3.4% so far this month made gold more attractive to foreign investors.
Independent analyst Ross Norman said this provided a modest boost, helping keep prices steady as traders awaited clarity on Trump’s tariffs. President Donald Trump has suggested some flexibility around the upcoming reciprocal tariffs, but market participants remain cautious. A more aggressive tariff announcement could push inflation higher and weigh on economic growth, fueling additional demand for gold.
Han Tan, chief market analyst at Exinity Group, said a harsh outcome could drive gold prices toward $3,100, while any signs of de-escalation could see the metal briefly fall below $3,000. He emphasized that traders are staying defensive as they await clarity on Trump’s tariffs. Adding to gold’s resilience, the Federal Reserve kept interest rates steady last week and signaled two cuts later this year. Lower rates tend to support gold by reducing the opportunity cost of holding non-yielding assets.
Gold reached a record high of $3,057.21 per ounce last week and has gained more than 15% so far in 2025. Norman forecast that prices could soon test the $3,150 mark, especially if inflationary pressures from tariffs materialize. Zain Vawda, market analyst at MarketPulse, said gold demand will likely remain strong in the short term as markets continue to await clarity on Trump’s tariffs and await Friday’s U.S. PCE data the Federal Reserve’s preferred inflation indicator. – By MENA Newswire News Desk.