Gold Prices Remain In The Red Below $2,800 Amid Strengthening USD
Gold prices (XAU/USD) pared some of their heavy Asian session losses and are currently trading around the $2,785 region, still down nearly 0.60% for the day (3/2). US President Donald Trump’s decision to impose tariffs on Canada, Mexico, and China lifted the US Dollar (USD) back to near two-year highs. This turned out to be a key factor that dragged the commodity away from its all-time peak of around the $2,717 region touched on Friday.
However, bets that the Federal Reserve (Fed) will cut borrowing costs twice by the end of 2025, coupled with concerns about the potential economic impact of Trump’s policies and risk-off sentiment, provided support to the safe-haven Gold prices. This, in turn, warrants caution for bearish traders ahead of this week’s key US macro data releases due at the start of the new month, starting with today’s ISM Manufacturing PMI.
Source: FXStreet