Spot gold climbed 0.3% to $2,866.76 per ounce by 0303 GMT. Meanwhile, US gold futures rose 1.1% to $2,880.50 per ounce.
A 0.4% decline in the dollar index made gold more affordable for holders of other currencies, supporting the metal’s upward trend.
Gold rates in India on March 3
Gold prices in India remained steady.
The 22-carat gold rate stood at ₹79,400 per 10 grams, while 24-carat gold was priced at ₹86,620 per 10 grams. The 18-carat gold rate also held steady at ₹64,970 per 10 grams, according to GoodReturns data.
Geopolitical risks and tariff concerns drive gold demand
“Today’s early Asian bullish tone in gold is likely driven by geopolitical risks due to the delay in the anticipated Ukraine-Russia peace deal,” said Kelvin Wong, senior market analyst at OANDA.
The recent meeting between Ukrainian President Volodymyr Zelenskiy and former US President Donald Trump ended in uncertainty, unsettling financial markets.
Additionally, US Commerce Secretary Howard Lutnick announced new tariffs on Canada and Mexico, effective Tuesday.
Former President Donald Trump also signaled an additional 10% tariff on Chinese goods, doubling the earlier duties imposed in February.
US economic data and Fed policy impact
On Friday (February 28), US data revealed a surprise drop in consumer spending for January, but rising inflation could delay Federal Reserve interest rate cuts. While gold serves as a hedge against geopolitical risks, its appeal weakens in a high-interest-rate environment.
–With Reuters inputs
