Gold prices rose on Monday, after touching a more than three-week low in the previous session, as they received support from a weaker dollar and safe-haven buying triggered by concerns over U.S. President Donald Trump's tariff policies.
At 1209 GMT, spot gold was gaining 0.5% to settle at $2,873.93 an ounce, while U.S. gold futures were up 1.3% at $2,885.
The dollar index (.DXY), open a new tab, fell 0.6% from a more than two-week high in the previous session, reflecting weakness that makes dollar-quoted gold less expensive for buyers holding other currencies.
"Gold's downside remains limited, given the apparent demand for safe haven assets amid growing uncertainties about geopolitical and economic growth," said Han Tan, chief market analyst at Exinity Group.
Last week, Trump threatened China with an additional 10% tariff, effective Tuesday, resulting in a cumulative tariff of 20%.
Despite being widely regarded as a hedge against geopolitical uncertainty, gold, which does not earn interest, becomes less attractive to investors when interest rates rise.
Gold fell more than 1% in the previous session, moving away from record highs reached multiple times this year, after U.S. inflation data suggested the Federal Reserve may take a cautious stance on cutting interest rates this year.
Traders await the U.S. payrolls report due later this week for more clues on the Fed's monetary policy.
"Our forecast for gold to reach $3,000 an ounce this year is unchanged," UBS analysts wrote, adding that it could reach $3,200 in certain risk scenarios.
"We see room for further gains in silver as the gold rally consolidates and global industrial production signals a modest recovery."
Spot silver rose 1.2% to $31.52 an ounce, platinum gained 0.8% to $955.5 and palladium added 1.5% to $933.09.
Rahul Paswan, Reuters