Market News

The U.S. dollar was down 0.1% against a basket of other major currencies on Monday, but around 3.4% lower so far this month, making gold less expensive for foreign buyers. [USD/]

U.S. President Donald Trump hinted on Friday that there would be some flexibility regarding reciprocal tariffs that are set to take effect on April 2 and are expected to drive inflation and hinder economic growth.

"A worse-than-feared tariff announcement on April 2 could give bullion bulls a shot in the arm towards striving for the $3,100 mark," said Han Tan, Exinity Group's chief market analyst.

Gold is traditionally viewed as a hedge during times of geopolitical and economic uncertainty.

"Should risk-on sentiment make a comeback, assuming the U.S. tariff threats prove to be more bark than bite, that could see fleeting forays below $3,000," Tan said.

After the Federal Reserve held its benchmark interest rate steady last week and indicated two quarter-percentage-point cuts this year, markets will look to the release on Friday of the U.S. Personal Consumption Expenditures (PCE), the central bank's preferred inflation measure.

Gold typically thrives in a low-interest-rate environment and reached an all-time peak of $3,057.21 per ounce last week, up more than 15% this year. [GOL/]

In the near term gold is expected to hit the $3,150 mark, said Norman.

"With no clear resolution to these uncertainties, (gold) demand is expected to stay elevated in the near term," said Zain Vawda, market analyst at MarketPulse by OANDA.

Spot silver firmed 0.3% to $33.12 an ounce, platinum added 0.5% to $979.50, and palladium was steady at $958.14.

(Reporting by Rahul Paswan in Bengaluru; Editing by Kirsten Donovan)