Gold Prices Stable as U.S. Tariffs Stir Market Uncertainty, Fed Rate Moves in Focus

Image Credit: Reuters

Gold prices remained stable in Asian trading on Monday, maintaining modest gains from last week, as the dollar stayed near a four-month low amid ongoing uncertainty around U.S. trade policies. 

Spot Gold remained largely unchanged at $2,911.21 per ounce, while Gold Futures for April delivery rose 0.1% to $2,918.27 an ounce by 02:05 ET (06:05 GMT). 

Investors were also assessing last week’s jobs data and comments from Federal Reserve Chair Jerome Powell to gauge the outlook for U.S. interest rates. 

In a recent Fox News interview, President Donald Trump refrained from predicting whether the U.S. would face a recession in 2025 amid escalating trade tensions. His administration’s 25% tariffs on imports from Mexico and Canada, along with additional tariffs on China, have raised concerns about potential economic slowdowns and inflation, unsettling investors and causing market volatility. 

In response, investors have increasingly turned to safe-haven assets like gold, which recently hit record highs. The precious metal’s appeal was also supported by the U.S. Dollar Index hovering near a four-month low, making gold more attractive when priced in dollars.

Meanwhile, other precious metals were largely stable. Platinum Futures held steady at $966.25 an ounce, while Silver Futures gained 0.3% to $32.943 an ounce.

Economic data released on Friday painted a mixed picture: the U.S. economy added 151,000 jobs in February, slightly below expectations, and the unemployment rate edged up to 4.1%. The weaker data bolstered expectations of more rate cuts in 2025. 

Fed Chair Powell, however, indicated that the central bank would remain patient on interest rates, emphasizing that the U.S. economy is in a relatively strong position despite ongoing uncertainties. He mentioned that the Fed was carefully evaluating Trump’s economic policies, including tariffs and potential layoffs of federal workers.

Meanwhile, copper prices ticked slightly lower amid weak data from China. February’s deflationary pressures in China, with both consumer and producer prices falling more than expected, have raised concerns about reduced industrial activity, which may further depress copper demand. Copper Futures on the London Metal Exchange edged down by 0.1%.

Paraphrasing text from "Investing.com" all rights reserved by the original author