Gold prices forecast experienced a slight decline, hovering near $2,880 during the early Asian trading session on Monday. This drop is primarily attributed to profit-taking activities by traders. However, concerns over a potential global trade war, fueled by US President Donald Trump’s push for reciprocal tariffs, may help limit further losses for the precious metal.
Profit-Taking and Trade War Fears
The recent dip in gold prices forecast is largely due to profit-taking by investors. Despite this, the ongoing uncertainty surrounding global trade policies has kept the market on edge. President Trump’s recent memorandum outlining plans for reciprocal tariffs has added to the tension. Although the implementation of these tariffs has been delayed, the possibility of escalating trade wars remains a key concern.
Impact of US Economic Data
Weak US economic data has also played a role in shaping gold prices. Recent reports show that US Retail Sales fell by 0.9% in January, missing market expectations of a 0.1% decline. This downturn has weakened the US Dollar (USD), providing some support to USD-denominated commodities like gold.
Safe-Haven Demand for Gold
Gold is traditionally viewed as a safe-haven asset during times of economic uncertainty. Any signs of escalating trade tensions or global instability could increase demand for the precious metal. Investors are closely monitoring developments in US tariff policies, as further trade disputes may drive gold prices higher.
What’s Next for Gold Prices?
The future of gold prices will depend on several factors, including US economic performance and global trade relations. While profit-taking has caused a temporary dip, the underlying fear of a trade war could sustain gold’s appeal. Investors should keep an eye on key economic indicators and policy announcements for further insights.
For more updates on gold prices and market trends, visit our Daily Gold Signal page. Additionally, you can explore our Daily Gold Update section for the latest news and analysis.
