PRECIOUS-Gold little changed as traders await clarity on Trump's tariffs
- Near-term demand for gold to remain elevated, says analyst
- Trump hints at some flexibility regarding tariffs
- Gold hit record high of $3,057.21 last week
March 24 (Reuters) - Gold prices were steady on Monday, underpinned by a weaker U.S. dollar and uncertainty around U.S. President Donald Trump's tariff plans.
Spot gold XAU= was at $3,026.85 an ounce at 1131 GMT. U.S. gold futures GCcv1 edged 0.4% higher to $3,032.40.
"A modestly weaker dollar is probably giving gold a little bit of a tailwind at present," said Ross Norman, an independent analyst.
The U.S. dollar was down 0.1% against a basket of other major currencies .DXY on Monday, but around 3.4% lower so far this month, making gold less expensive for foreign buyers. USD/
President Trump hinted on Friday that there would be some flexibility regarding reciprocal tariffs that are set to take effect on April 2 with expectations they will drive inflation and hinder economic growth.
"A worse-than-feared tariff announcement on April 2 could give bullion bulls a shot in the arm towards striving for the $3,100 mark," said Han Tan, Exinity Group's chief market analyst.
Gold is traditionally viewed as a hedge during times of geopolitical and economic uncertainty.
"Should risk-on sentiment make a comeback, assuming the U.S. tariff threats prove to be more bark than bite, that could see fleeting forays below $3,000," Tan said.
Following the Federal Reserve's decision to hold its benchmark interest rate steady last week with an indication of two quarter-percentage-point cuts this year, markets will now look to the release on Friday of the U.S. Personal Consumption Expenditures (PCE), the central bank's preferred inflation measure.
Gold typically thrives in a low-interest-rate environment and reached an all-time peak of $3,057.21 per ounce last week, up more than 15% this year. GOL/
In the near term, gold is expected to hit the $3,150 mark, said Norman.
"With no clear resolution to these uncertainties, (gold) demand is expected to stay elevated in the near term," said Zain Vawda, market analyst at MarketPulse by OANDA.
Spot silver XAG= firmed 0.4% to $33.16 an ounce, platinum XPT= steadied at $975.55, and palladium XPD= was flat at $957.95.
Spot gold price in USD per oz
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