Gold prices continued their upward momentum on Thursday, bolstered by a weakening US dollar and investor anticipation ahead of the US non-farm payrolls report, which is expected to offer insights into the Federal Reserve’s future interest rate decisions. As concerns about global trade tensions mount, gold remains a safe haven for investors.
Spot gold rose by 0.1% to $2,922.86 per ounce by 03:20 GMT, while US gold futures climbed 0.2%, reaching $2,931.60. The dollar index, which tracks the greenback against a basket of currencies, languished near a four-month low, following the US decision to delay imposing a 25% tariff on Canadian and Mexican automakers for another month, provided they adhere to existing free trade agreements.
The Trump administration’s willingness to discuss exemptions for other products from the tariffs further contributed to the dollar’s dip. “A potential delay in the tariff war by the US has caused the dollar to weaken, providing support for gold,” said Jigar Trivedi, senior analyst at Reliance Securities. “The broader sentiment surrounding gold remains very positive.”
US President Donald Trump’s tariff policies have strained relationships with trading partners like Canada, Mexico, and China. While Canada and China have retaliated with tariffs on select US imports, Mexico has promised to respond in kind.
These concerns pushed gold to a record high of $2,956.15 per ounce on February 24, with the precious metal now up more than 11% year-to-date. Gold is often seen as a hedge against political instability and inflation, making it a popular asset during times of uncertainty.
IG market strategist Yeap Jun Rong noted, “The $3,000 psychological level for gold seems increasingly attainable as prices continue to rise after a brief retracement.”
Market participants are now closely monitoring the US non-farm payrolls report, which is expected to show a gain of 160,000 jobs for February, according to economists surveyed by Reuters.
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