Gold prices started the week on a higher note, rebounding after a correction on Friday.
This rise comes amid a weaker U.S. dollar and growing expectations that the Federal Reserve could cut interest rates in July, sooner than previously anticipated.
Additionally, the uncertainty surrounding President Donald Trump’s reciprocal tariff plans could bolster gold prices.
Last week, Trump directed officials to explore reciprocal tariffs on countries imposing duties on U.S. goods, raising concerns over a potential global trade war.
His proposal to levy tariffs on automobiles as early as April 2 could drive investors toward gold as a hedge against economic instability. If implemented, these measures may sustain gold’s upward momentum, while a policy reversal could prompt selling pressure on the precious metal.
Geopolitical developments could also shift sentiment. With optimism growing for a resolution to the Ukraine-Russia conflict, following reported U.S.-Russia negotiations, demand for gold as a safe-haven asset may be reduced, which could cloud the short-term outlook.
