Trade and rate worries keep gold prices at $2,900/oz

 Gold prices firmed slightly on Monday, steadying below record highs as safe haven demand for the yellow metal remained underpinned by uncertainty over U.S. trade tariffs and interest rates. 

The yellow metal clocked a series of record highs in the past two weeks as tariff actions by U.S. President Donald Trump pushed up risk aversion and safe haven demand. But Trump’s postponement of some tariffs pulled gold prices off their peaks.

Safe haven demand was also dented by speculation over a Russia-Ukraine peace treaty, as Trump flagged a desire for peace from both sides. Talks over the treaty are likely to begin in the coming weeks.

Spot gold rose 0.6% to $2,901.21 an ounce, while gold futures expiring in April rose 0.3% to $2,910.70 an ounce by 00:35 ET (05:35 GMT). 

Gold keeps recent record highs in sight 

Spot prices remained in sight of a record high of $2,943.25 an ounce hit last week.

The yellow metal was boosted by increased haven demand after Trump imposed 25% import duties on steel and aluminum imports. Trump also outlined plans for reciprocal tariffs on major U.S. trading partners, although these are only expected by April.

Media reports over the weekend said the European Union was planning to block imports of U.S. soybeans and other foods diverging from domestic standards, although Trump brushed off the reports and reiterated plans to impose reciprocal tariffs.

But Trump's recent imposition of metal tariffs drew ire from other countries, while Beijing also retaliated to a 10% duty imposed by Trump earlier this month. 

This kept some safe haven demand for gold in play, as markets braced for a brewing trade war between the world’s biggest economies. 

Dollar weakness benefits metal prices 

A softer dollar- which sank to a two-month low on Monday- also aided metal markets, especially as recent data outlined some weakness in the U.S. economy.

Retail sales data for January read softer-than-expected on Friday, drumming up concerns that consumer spending- which has been a major driver of inflation- could be cooling.

The reading was preceded by stronger-than-expected consumer and producer inflation readings for January. But the readings also showed that some components- which factor into PCE price index data- cooled slightly.

Recent U.S. data sparked some bets that the Federal Reserve could be forced into lowering interest rates sooner due to a softening economy.

This notion weighed on the dollar, benefiting metal prices in recent weeks, although they still fell on Monday.

Platinum futures fell 0.2% to $1,016.80 an ounce, while silver futures fell 0.2% to $32.785 an ounce.

Among industrial metals, copper prices cooled after logging strong gains last week. Benchmark copper futures on the London Metal Exchange fell slightly to $9,468.45 a ton, while March copper futures fell slightly to $4.6640 a pound.