Gold prices rose on Monday after hitting a more than three-week low in the previous session, supported by a weaker dollar and safe-haven buying triggered by concerns over US President Donald Trump's tariff policies.
At 1209 GMT, spot gold was up 0.5% at $2,873.93 an ounce, while US gold futures rose 1.3% to $2,885.
The dollar index (.DXY), opens a new tab, fell 0.6% from a more than two-week high in the previous session, reflecting weakness that makes dollar-denominated gold less expensive for buyers holding other currencies.
“Gold's decline remains limited, given the apparent demand for safe-haven assets amid growing geopolitical and economic growth uncertainties,” said Han Tan, chief market analyst at Exinity Group.
Last week, Trump threatened China with an additional 10% tariff, which would take effect on Tuesday, resulting in a cumulative tariff of 20%.
Despite being widely regarded as a hedge against geopolitical uncertainty, gold, which does not generate interest, becomes less attractive to investors when interest rates rise.
Gold fell more than 1% in the previous session, moving away from the record highs reached multiple times this year, after US inflation data suggested that the Federal Reserve could take a cautious stance on cutting interest rates this year.
Traders are awaiting the US payrolls report due later this week for further clues on the Fed's monetary policy.
“Our forecast for gold to reach $3,000 an ounce this year remains unchanged,” UBS analysts wrote, adding that it could reach $3,200 in certain risk scenarios.