Gold Prices Decline as Dollar Gains, But Remain on Track for Monthly Increase

Gold prices edged lower in Asian trading on Friday as:

• The U.S. dollar strengthened ahead of key inflation data.
• Investors awaited the U.S. PCE price index, the Federal Reserve’s preferred inflation gauge, for further rate signals.

At 01:44 ET (06:44 GMT):

• Spot gold fell 0.4% to $2,864.94 per ounce.
• Gold futures (April) lost 0.6% to $2,877.80 per ounce.

Gold Set for a 2% Monthly Gain Amid Trade Tensions

Despite Friday’s decline, gold remains up nearly 2% this month, driven by:
✅ Safe-haven demand amid U.S. trade tariff concerns.
✅ Uncertainty over Federal Reserve interest rate policy.
✅ Worries that tariffs could fuel inflation risks while slowing economic growth.

Trump’s Tariff Plans Fuel Investor Caution

Investors grew wary after Trump reaffirmed plans to:

• Impose a 25% tariff on Mexican and Canadian imports.
• Introduce a fresh 10% tariff on Chinese goods.

🔹 ING analysts noted: “Concerns that tariffs might intensify inflation risks as economic growth slows are boosting demand for safe-haven assets like gold.”

🔹 They added: “With tariff concerns likely to linger, gold will continue to benefit from heightened uncertainty.”

Other Precious Metals Decline Amid Dollar Strength

📉 Platinum Futures fell 0.4% to $948.55 an ounce.
📉 Silver Futures dropped 1% to $31.495 an ounce.

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Copper Falls on Tariff Concerns, But China Stimulus Could Limit Losses

Copper prices declined further as Trump’s trade policies raised fears of slowing global growth.

📌 In early February, Trump announced a 25% tariff on all steel and aluminum imports, set to take effect on March 12.

🔹 ING analysts commented:

• “Tariffs are bearish for industrial metals as global growth slows.”
• “However, expectations that Beijing may introduce more aggressive stimulus measures could limit the downside for metal prices.”

At Friday’s session:
📉 London Metal Exchange Copper Futures dropped 0.7% to $9,354.40 per ton.
📉 April Copper Futures slid 1% to $4.549 per pound.

💡 The immediate focus remains on China’s potential stimulus measures, which could support demand for industrial metals despite global trade concerns.