On the other hand, support is seen at $ 2,888.52, with a stronger purchase interest expected around $ 2,857.49 and $ 2,836.67. A movement under $ 2,864.33 could shift down in the short term, but a persistent sale seems unlikely in view of the underlying market support.
At 11:52 GMT, XAU/USD $ 2900.39, an increase of $ 17.91 or +0.62%.
Gold benefits of dollar weakness and tariff uncertainty
A weaker American dollar offers a tail wind for gold, making the metal more attractive for international buyers. The dollar index remains under pressure and is struggling to recover after the fall of 1.2% last week, powered by weaker than expected American retail sales data.
As an addition to the uncertainty of the market, former President Donald Trump has renewed the tariff threats, which states that car taxes can already take effect in 2 April. UBS analyst Giovanni Staunovo again confirmed a bullish prospect, in which prices are spent to reach $ 3,000, supported by the current demand for Central Bank.
Geopolitical developments can influence the momentum of Gold
Markets look accurately in American negotiations, because reports suggest that Saudi Arabia can organize peace talks about the conflict in Ukraine. The progress in these discussions can push part of Gold’s profit, although the underlying geopolitical risks remain an important engine for the metal. Exinity Group analyst Han Tan noted that although peace talks can delay the meeting of Gold, there remains sufficient support to increase prices.
In the meantime, the American Federal Reserve officials will speak later in the day, with traders insight into insights into the future interest rate. The recent decline in US economic data has re-applied the expectations for potential reductions of the FED rate, which would further support non-interest signs such as gold.