Gold News: Safe-Haven Demand Rises as Traders Brace for PCE and Tariff Decisions

Gold Prices Forecast: Rangebound Trade Signals Volatility Ahead as Traders Eye Tariffs, PCE Data

Gold prices are holding steady at the start of the week, pausing after last week’s sharp two-day pullback. Monday’s trade remains confined within Friday’s range, signaling indecision as traders await fresh catalysts. The precious metal remains in a broader uptrend, but near-term correction risks persist, especially with key macro data and tariff-related headlines on the horizon.

At 11:14 GMT, XAU/USD is trading $3027.49, up $3.50 or +0.12%.

Dollar Weakness Offers Tailwind to Gold

The U.S. dollar eased 0.1% against a basket of major currencies on Monday, extending its monthly decline to 3.4%. A softer dollar typically supports gold by making it more affordable for overseas buyers. This dollar weakness has helped stabilize gold prices following the recent retreat, offering short-term support around the $3,000 level.

Tariff Uncertainty Keeps Safe-Haven Demand Elevated

Markets remain alert to potential economic fallout from U.S. President Donald Trump’s proposed tariffs, set to take effect on April 2. While Trump hinted at possible flexibility, concerns remain that retaliatory measures could stoke inflation and slow economic growth. Analysts suggest that a more aggressive tariff stance could push gold toward the $3,100 level, while a less severe outcome may open the door for brief dips below $3,000.

Fed Policy and PCE Data in Focus

Gold remains well-supported by the Federal Reserve’s dovish stance, with policymakers holding rates steady last week and projecting two rate cuts this year. Traders are now turning to Friday’s release of the U.S. Personal Consumption Expenditures (PCE) report — the Fed’s preferred inflation metric — for further policy clues. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, reinforcing its appeal.

Technical Levels to Watch

Technically, gold is consolidating after reaching a record high of $3,057.59 last week. A break above that level would resume the uptrend with open-ended upside potential. Key near-term support lies at $2,968.92, while the 50-day moving average at $2,874.97 remains the critical level for longer-term bulls.

Gold Market Outlook: Bullish Bias Holds Above Key Support

With support from a weakening dollar, central bank dovishness, and tariff uncertainty, gold demand is expected to remain firm. Unless inflation data surprises to the upside or tariff fears ease substantially, dips are likely to be shallow. As long as gold holds above $2,968.92, the broader bullish structure remains intact, keeping $3,100 and potentially $3,150 in focus over the near term.

More Information in our Economic Calendar.