Gold eased on Monday as the dollar ticked up, while investors awaited fresh catalysts after last week’s rally saw bullion notch three consecutive record highs, helped by geopolitical and economic concerns, and hopes of US interest rate cuts.
Spot gold fell 0.2% to $3,016.43 an ounce, as of 0302 GMT. US gold futures were steady at $3,020.80. Gold reached a record high of $3,057.21/oz on Thursday.
The dollar index drifted near a three-week high, making greenback-priced gold more expensive for overseas buyers.
“Gold is still well positioned for further upside if markets remain edgy about the possible negative growth effects of tariffs, but this could be partially offset if a Russia-Ukraine ceasefire deal comes closer to fruition,” KCM Trade chief market analyst Tim Waterer said.
A US delegation will pursue a Black Sea ceasefire and broader peace in Ukraine in talks with Russia on Monday, while an Israeli airstrike at a hospital in Gaza on Sunday killed five people, including a Hamas political leader.
US President Donald Trump announced a wave of reciprocal tariffs to take effect on April 2, which is likely to fuel inflation and hinder economic growth.
However, Trump hinted on Friday there would be some flexibility regarding tariffs.
“President Trump has left some wiggle room for the reciprocal tariffs to potentially be less severe than feared, which has lowered market anxiety to a degree but… it has also sapped the gold price of a bit of momentum,” Waterer said.
Gold dips on higher dollar, still eyes third weekly gain
Zero-yield bullion is seen as a hedge against geopolitical turmoil, economic uncertainties, and inflation.
The US Federal Reserve held its benchmark rate steady in the 4.25%-4.50% range last week.
Policymakers see two quarter-percentage-point cuts by 2025-end.
Spot silver firmed 0.1% to $33.06 an ounce, platinum rose 0.3% to $977.80, and palladium added 0.2% to $960.31.
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