Gold eases below $2,900 amid profit-taking
Gold (XAU/USD) prices eased near $2,880 amid profit-taking during the early Asian session on Monday (February 17). However, concerns over a global trade war following US President Donald Trump’s push for reciprocal tariffs could help limit the losses for the precious metal.
A delay in the implementation of the Trump administration’s tariff proposals and profit-taking by traders capped gains for the yellow metal. Trump on Thursday signed a presidential memorandum outlining his plan to impose “reciprocal tariffs” on foreign countries. However, he delayed their implementation as his administration launched one-on-one negotiations with countries that could be affected. Easing concerns over a global trade war weighed on the prices of Gold, a traditional safe-haven asset.
Investors will be closely monitoring developments surrounding Trump’s next round of tariffs. Any signs of escalating trade tensions and uncertainty could boost safe-haven flows, which benefit the precious metal.
Downbeat US economic data dragged the US Dollar (USD) lower, which could provide some support to the USD-denominated commodity. Retail Sales in the United States fell by 0.9% in January from a 0.7% increase (revised from 0.4%) in December, the U.S. Census Bureau showed on Friday. The reading was below market consensus of -0.1%.
Source: FXStreet
