Gold prices fell on Monday as profit-taking countered support from safe-haven demand driven by geopolitical uncertainty, while attention was also on the U.S. inflation data.
At 1740 GMT, spot gold was down 0.8% at $2,887.67 an ounce, after rising 2% the previous week. U.S. gold futures closed down 0.5% at $2,899.40.
"There is a bit of a pause in gold prices due to mild profit-taking and a weaker stock market. However, we could see some safe haven bids later on," said Jim Wyckoff, senior analyst at Kitco Metals.
U.S. stock index futures fell as concerns persisted that tit-for-tat tariffs could hurt the world's largest economy.
President Donald Trump refused to predict whether the United States could face a recession amid stock market concerns over his tariff actions.
Last Tuesday, Trump imposed new 25% tariffs on imports from Mexico and Canada, along with new levies on Chinese goods. But two days later, he exempted many imports from Mexico and some from Canada from those tariffs for a month.
"Uncertainty around trade wars and global economic downturns are bullish for gold, and it is possible it could return to record levels. Weaker than expected data will be supportive for gold," Wyckoff said.
Investors are also looking ahead to U.S. consumer price index data to be released on Wednesday and the producer price index to be released on Thursday. Traders are already fully discounting a U.S. interest rate cut in June.
Federal Reserve Chairman Jerome Powell said Friday that it remains to be seen whether the Trump administration's tariff plans will prove inflationary.
Lower rates increase the attractiveness of non-yielding bullion.
Spot silver fell 1.5% to $32.03 an ounce.
"Investment in silver is forecast to improve modestly.... However, broader economic concerns, particularly related to China's economy, could dampen investor enthusiasm," Marex consultant Edward Meir said in a note.
Data showed that China's imports unexpectedly declined during the January-February period, while the consumer price index fell at the steepest pace in 13 months in February.
Platinum fell 0.4% to $959.35 and palladium was down 0.9% to $941.38.
Ashitha Shivaprasad, Reuters