Gold Prices Continue to Rise Amid Economic Concerns and a Weak Dollar
Gold prices rose during Asian trading on Monday, supported by a weaker dollar and increased demand for safe-haven assets amid growing concerns over global trade tensions. Investors are also awaiting new signals from the Federal Reserve regarding its monetary policy and interest rate trends.
Price Update
Spot gold rose 0.1% to $2,914.42 per ounce as of 00:52 GMT, while U.S. gold futures increased by 0.3% to $2,921.90 per ounce.
As for other precious metals:
Silver gained 0.1% to $32.56 per ounce. Platinum remained unchanged at $962.90 per ounce. Palladium declined 0.2% to $946.30 per ounce, according to Reuters data.
Trade Tensions and Market Impact
U.S. trade policies have sparked concerns in financial markets, with President Donald Trump refraining from making clear predictions about a possible recession, amid mounting worries over the impact of tariffs imposed on Mexico, Canada, and China.
The 25% tariffs on imports from Mexico and Canada have caused volatility in Wall Street, particularly after some of these measures were reversed, temporarily exempting certain imports. These unpredictable policy shifts have heightened uncertainty in markets and raised fears about inflation and economic growth in the United States.
Gold as a Safe Haven in Economic Uncertainty
Concerns over tariffs and trade policies have pushed gold prices to a record high of $2,956.15 per ounce on February 24, as the precious metal remains a key hedge against economic instability and inflation.
However, prolonged high interest rates could reduce gold’s appeal, as it is a non-yielding asset.
Jobs Report and Market Expectations
A U.S. Labor Department report released on Friday showed that non-farm payrolls increased by 151,000 jobs last month, compared to an adjusted gain of 125,000 jobs in January.
Markets are closely watching how this data might influence the Federal Reserve’s decisions, as any indications of potential interest rate cuts in the future could further support gold prices.
