Investing.com – Gold prices continued to gain momentum as U.S. President Donald Trump’s announcement regarding tariffs on imported steel and aluminum sparked a sell-off in equities and the dollar.
Gold futures for April delivery on the Comex division of the New York Mercantile Exchange rose by $4.1, or 0.32%, to $1,327.50 a troy ounce by 11:45pm ET.
U.S. President Donald Trump’s tariff policy on steel and aluminium caused concerns to global investors, as the administration stressed over the weekend that there would be no exclusion for any country. The dollar has been sliding since Trump announced the tariffs last Friday.
The dollar opened in Asia morning at a low level despite its short-lived rally last week when new Federal Reserve head Powell confirmed the tightening policy.
The US Dollar Index that measures a basket of six major currencies slid 0.02% to 89.93. The dollar had been trading below the 90 handle on Monday morning.
Dollar-denominated assets such as gold are sensitive to moves in the dollar, as a fall in the dollar makes gold cheaper for holders of foreign currency and thus, increases demand for the precious metal.
Gold prices were under pressure last week following Federal Reserve chair Jerome Powell’s hawkish comments, but clawed back most of its weekly loss last Friday in reaction to a weaker dollar and lower equity prices.
Asian stocks traded lower in morning trading on Monday, hovering near 2-week lows. China was in focus on Monday as this year’s National People’s Congress opened in Beijing today.