Gold Price Forecast: XAU/USD drifts lower below $2,900 amid profit-taking
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Gold price trades in negative territory around $2,880 in Monday’s early Asian session.
Trump tariff delay eases panic in markets, weighing on the Gold price.
The uncertainty, rising trade tensions and weaker USD could lift the XAU/USD price.
Gold price (XAU/USD) edges lower to near $2,880 due to profit-taking during the early Asian session on Monday. However, fears of a global trade war in the wake of US President Donald Trump's push for reciprocal tariffs might help limit the precious metal’s losses.
The delay in the Trump administration's tariff proposals being implemented and profit-taking by traders cap the upside for the yellow metal. Trump on Thursday signed a presidential memorandum laying out his plan to impose “reciprocal tariffs” on foreign nations. However, he delayed their implementation as his administration launched negotiations on a one-by-one basis with nations that could be impacted. The easing fear of a global trade war weighs on the Gold price, a traditional safe-haven asset.
Investors will closely monitor the developments surrounding further Trump’s tariff policies. Any signs of escalating trade tension and uncertainty could boost safe-haven flows, benefiting the precious metal.
The downbeat US economic data drag the US Dollar (USD) lower, which could provide some support to the USD-denominated commodities price. Retail Sales in the United States fell by 0.9% in January from the 0.7% increase (revised from 0.4%) in December, the US Census Bureau showed Friday. This figure came in below the market consensus of -0.1%.
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