- In the early Asian sessions, gold prices will be higher to around 2,915 US dollars on Monday.
- Global uncertainty and Trump’s tariff risks support gold prices.
- The weaker US jobs in February are lowering the US dollar.
Gold price (XAU/USD) saw modest buying interest around $2,915 during the early Asian session on Monday. Market uncertainty and concerns over a potential global trade war, fueled by US President Donald Trump’s policies, provided support to the precious metal.
Last week, President Trump signed an executive order on Thursday exempting goods from Canada and Mexico under the USMCA trade agreement, just two days after initially imposing them. However, US Commerce Secretary Howard Lutnick stated on Sunday that the 25% tariffs on steel and aluminum imports, set to be implemented on Wednesday, are unlikely to be delayed. The ongoing uncertainty surrounding US tariff policies is expected to drive safe-haven demand, boosting gold prices in the short term.
Additionally, recent data indicates that the US labor market lost momentum last month. The slowdown supports expectations that the Federal Reserve (Fed) will proceed with multiple interest rate cuts this year. This has placed downward pressure on the US Dollar (USD), making gold—priced in USD—more attractive.
According to the US Bureau of Labor Statistics (BLS), Nonfarm Payrolls (NFP) rose by 151,000 in February, following a revised increase of 125,000 in January (previously reported as 143,000). The figure fell short of market expectations of 160,000.
Meanwhile, the Unemployment Rate edged up to 4.1% from 4.0% in January, while annual wage growth, as reflected in Average Hourly Earnings, increased to 4.0% from a revised 3.9% (previously 4.1%).
