Gold prices remained in a consolidation phase during Monday's Asian trade, hovering below last week’s all-time high of US$2,954.95 as investors exercised caution amid ongoing geopolitical tensions and weaker-than-expected economic data.
By 4:10 pm AEDT (5:10 am GMT) spot gold was trading $4.18 or 0.1% higher at US$2,940.7 per ounce.
Despite a weaker U.S. dollar, gold struggled to gain traction as U.S. Treasury yields rebounded, limiting the metal’s appeal.
The market also digested fresh geopolitical and economic developments, including China’s latest rural revitalisation measures and renewed optimism over fiscal reforms in the Euro area.
Meanwhile, the U.S. Composite Flash PMI Output Index fell to 50.4 in February, its lowest in 17 months, reinforcing expectations of at least two Federal Reserve rate cuts this year.
Traders remain watchful for further developments in U.S.-Russia negotiations on Ukraine, with Russian officials indicating that upcoming talks will involve senior department heads.
Additionally, uncertainty looms over potential trade policies from U.S. President Donald Trump, particularly regarding tariffs, which could impact gold’s trajectory.
