Gold closed up on Monday (3), driven by the demand for safety assets, in the face of geopolitical uncertainties and the proximity of US tariff application to business partners.
The weakening of the dollar in this session also contributed to the greatest interest in the metal.
Gold to April closed up 1.85%to $ 2,901.10 per jaguar at Comex, the New York Mercantile Exchange (Nymex) metal division.
According to Exnes, gold metal benefits from the uncertain environment of the market, but safety commodity can record high volatility in the short term in the face of geopolitical and economic factors that affect the feeling.
“Additional US tariffs can potentially intensify commercial tensions and lead investors to security assets,” the institution mentions by pointing out that a possible agreement between US, Canada and Mexico, targets of the first tariff round, can cool gold prices.
According to Exnes, this week, the market also follows the dissemination of important US economic data, such as Payroll, as they may indicate what the probable federal reserve posture should be for the next monetary decision meeting.
A cut in interest rates can support gold prices more.
Commerzbank points out, however, that precious metal is subject to correction drop movements and that Hong Kong’s gold deliveries to China have fallen “significantly.”
