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Gold prices remain stable as traders wait for clarity on Trump's tariffs

Gold prices were stable on Monday due to a weaker dollar and the uncertainty surrounding President Donald Trump's proposed tariffs.

At 1000 GMT, spot gold was $3,024.39 per ounce. U.S. Gold Futures rose 0.3% to $3,029.50.

Ross Norman, a independent analyst, said that a modestly weaker US dollar may be giving gold some momentum at the moment.

Gold is now less expensive to foreign buyers because the U.S. Dollar has fallen by 0.1% on Monday against a basket other major currencies, but it's been down around 3.4% this month.

U.S. president Donald Trump hinted Friday at some flexibility in regards to reciprocal tariffs, which are due to go into effect on April 2, and are expected drive inflation and impede economic growth.

Han Tan, chief market analyst at Exinity Group, said that a worse-than-expected tariff announcement on the 2nd of April could give bullion bears a boost in their quest to reach the $3,100 level.

Gold has traditionally been viewed as an investment during periods of geopolitical or economic uncertainty.

Tan stated that if the risk-on attitude returns, and if U.S. Tariff threats are more bark than bite as Tan believes, then there could be a few brief forays under $3,000," Tan explained.

After the Federal Reserve held its benchmark interest rate steady last week and indicated two quarter-percentage-point cuts this year, markets will look to the release on Friday of the U.S. Personal Consumption Expenditures, the preferred inflation indicator of the central bank.

Gold is usually more profitable in an environment with low interest rates. It reached a record high of $3,057.21 for one ounce last weekend, up over 15% this year.

Norman said that gold will likely reach $3,150 in the near future.

MarketPulse's Zain Vawda said that gold demand will remain high in the short term, as there is no resolution to the uncertainty.

Silver spot rose 0.3%, to $33.12, platinum gained 0.5%, to $979.50 and palladium remained at $958.14. (Reporting and editing by Kirby Donovan in Bengaluru)

(source: Reuters)