Gold Supported by Safe-Haven Demand Amid Recession Concerns

Gold prices edged higher in Asian trading on Tuesday as the U.S. dollar weakened to a four-month low amid mounting recession fears driven by President Donald Trump’s trade policies. Investors are now cautiously awaiting the release of U.S. consumer price index (CPI) data scheduled for Wednesday, which could have a significant impact on the Federal Reserve’s upcoming monetary policy decision amid ongoing tariff uncertainties.

Spot gold rose 0.4% to $2,900.17 per ounce, while April gold futures increased 0.2% to $2,904.50 an ounce by 02:36 ET (06:36 GMT).

Trump’s administration has imposed 25% tariffs on imports from Mexico and Canada, with additional measures targeting China, fueling concerns about potential economic slowdowns and rising inflation. In a recent Fox News interview, President Trump refrained from predicting whether the U.S. might slip into a recession in 2025, even as a Reuters poll indicated that economic risks are mounting for Mexico, Canada, and the U.S. due to the chaotic implementation of these tariffs.

Amid these developments, gold’s safe-haven appeal remained strong, as the weakening dollar—down 0.2% and near its four-month low—made the yellow metal more attractive to foreign investors. Market participants are also closely watching for February’s CPI data, the final crucial indicator ahead of the Federal Reserve’s meeting on March 18-19 to determine the future course of interest rates.

Other precious metals were largely subdued. Platinum futures inched 0.3% lower to $961.20 per ounce, while silver futures rose 0.3% to $32.638 per ounce.