As of 0444 GMT, spot gold rose by 0.1% to $2,939.15 per ounce, following an all-time high of $2,954.69 reached on Thursday. U.S. gold futures remained stable at $2,953.
Tim Waterer, chief market analyst at KCM Trade, noted that "disappointing U.S. macro data from late last week has impacted the dollar, creating an opportunity for gold to rise." He added that ongoing trade uncertainties may allow gold to aim for new record highs this week.
Last week, U.S. President Donald Trump announced potential new tariffs, including on lumber and forest products, in addition to previously proposed duties on imported cars, semiconductors, and pharmaceuticals.
Market participants are now looking ahead to the Personal Consumption Expenditures (PCE) report, the Federal Reserve's preferred measure of inflation, due on Friday, which may provide further clarity on the central bank's interest rate plans. If inflation remains high, it could reduce gold's attractiveness as a non-yielding asset.
Ajay Kedia, director at Kedia Commodities in Mumbai, stated that for gold to surpass the $3,000 mark, a compelling reason is needed, as the war premium appears to have diminished and other supportive factors are already priced in.
On the geopolitical front, Trump acknowledged on Friday that Russia had indeed invaded Ukraine and mentioned that Kyiv would soon finalize a minerals agreement with the U.S. as part of efforts to resolve the conflict.
In other precious metals, spot silver increased by 0.4% to $32.67 per ounce, while platinum rose by 0.5% to $974.10. Palladium, however, saw a slight decline of 0.2%, trading at $967.56.