Gold extended gains for the fourth consecutive session during Monday's Asian deals, as investors sought safe-haven assets amid renewed United States tariff confusion, soft economic data and lingering geopolitical risks.
By 3 pm AEDT (4 am GMT), spot gold was trading 1.2% higher at US$5,168.42 per ounce, holding firmly above the US$5,150 level.
Bullion began the week on a strong footing after U.S. President Donald Trump’s shifting tariff announcements unsettled financial markets and dented investor confidence, reviving demand for defensive assets.
The U.S. Supreme Court on Friday struck down Trump’s emergency tariffs, prompting the President to announce a new 10% levy on imports from the rest of the world, before subsequently raising it to 15%.
The abrupt policy changes reignited concerns over policy unpredictability, weighing on U.S. assets, including the U.S. dollar, as the “Sell America” theme resurfaced.
U.S. Treasuries also faced pressure amid speculation that the latest tariff measures could force the government to repay an estimated US$175 billion (A$248.3 billion) in revenue.
Gold’s advance was further supported by weaker-than-expected U.S. economic data and caution ahead of earnings from artificial intelligence leader Nvidia later this week.
Data showed U.S. economic growth slowed sharply to an annualised 1.4% in the fourth quarter, well below the 3% forecast.
Meanwhile, the Federal Reserve’s preferred inflation measure, the core personal consumption expenditure (PCE) price index, rose 3% year-on-year in December, exceeding expectations of 2.9%.
Markets continue to price in at least 50 basis points of Federal Reserve rate cuts this year, with the first move expected in June, according to the CME Group FedWatch Tool.
Looking ahead, haven demand may remain elevated as Chinese traders return from a week-long holiday on Tuesday, potentially boosting physical demand.
ANZ analysts noted: "Sentiment was supported by strong retail demand in China during the Lunar New Year holiday. Hong Kong reported a 13% surge in visitors from mainland China, boosting jewellery sales by 10%.
"Investment gold retailers have also been increasingly taking up positions in high street shops amid a surge in interest for gold coins and bars."
Geopolitical tensions are also in focus ahead of a fresh round of talks between the United States and Iran in Geneva on Thursday.
