Spot Gold holds above $2,900 on weaker dollar, haven demand

Key moments

Spot Gold firmed at the start of the new week, while holding above the $2,900 mark, underpinned by dollar weakness and safe haven demand amid concerns of a global trade conflict.

“There are mounting downside risks to growth, while U.S. foreign policy is also a source of uncertainty, boosting the appeal for gold,” Capital.com’s financial market analyst Kyle Rodda was quoted as saying by Reuters.

“I think $3,000 is a level we’ll breach soon – probably in the next couple of months at the latest.”

The US Dollar Index hovered above a four-month trough, after data showed on Friday that the US economy had added fewer than expected jobs last month.

A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.

Employers in all sectors of the US economy, excluding farming, added 151,000 job positions in February, following the revised down 125,000 in January and against market consensus of 160,000.

The data implied the Federal Reserve was still on track to deliver multiple interest rate cuts this year. Markets are now pricing in at least three 25 basis point rate cuts for 2025. The first rate cut is likely to come as early as June.

In prepared remarks to the University of Chicago School of Business, Federal Reserve Chair Jerome Powell said on Friday that the central bank was in no rush to lower interest rates, as it expects more clarity on how the Trump administration’s policies affect the economy.

This week, investors’ focus will likely set on the US job openings, CPI inflation and producer price inflation figures due on Tuesday, Wednesday and Thursday respectively.

Spot Gold was last up 0.14% on the day to trade at $2,913.62 per troy ounce.

Gold Futures for delivery in April were up 0.14% on the day to trade at $2,918.11 per troy ounce.