Gold rose to around $2,870 per ounce on Monday, as concerns over U.S. President Donald Trump tariff policies prompted safe-haven flows into bullion.
Trump's proposed tariffs on Mexican and Canadian goods, set to take effect on March 4, alongside an additional 10% duty on Chinese goods, have fueled concerns over potential retaliatory measures and broader trade tensions.
The inflationary impact of these actions also supports gold, which is often seen as a hedge against rising prices. Adding to its appeal, the U.S. dollar retreated from a two-week high, making the metal less expensive for other currency holders.
Moreover, the resurgence of fears about the health of the U.S. economy have boosted market expectations for Federal Reserve interest-rate cuts, increasing bullion's allure as a non-yielding asset.
Source: Trading Economics
