Gold Prices Climb as US Dollar Weakens
March 11, 2025 – Easy Trading Tips – Gold prices saw an uptick in Asian markets on Tuesday, buoyed by a weakening U.S. dollar that lingered near a four-month low. Concerns over a potential U.S. recession—heightened by trade policies under President Donald Trump—added to the demand for the precious metal.
Market participants are closely monitoring the U.S. Consumer Price Index (CPI) report, set for release on Wednesday. The inflation data could influence the Federal Reserve’s next monetary policy decision, particularly as economic uncertainty persists due to ongoing trade disputes.
Gold Prices Show Gains
Spot gold climbed 0.4% to $2,900.17 per ounce, while gold futures for April delivery edged up 0.2% to $2,904.50 per ounce as of 02:36 ET (06:36 GMT).
Safe-Haven Demand Boosts Gold as Recession Concerns Mount
The Trump administration’s aggressive trade policies, including a 25% tariff on imports from Mexico and Canada and additional levies on Chinese goods, have fueled fears of an economic slowdown. The uncertainty surrounding these measures has also increased inflationary concerns.
Speaking on Fox News last week, President Trump avoided making predictions on whether the U.S. could enter a recession in 2025 as trade tensions escalate.
A Reuters poll indicated that economic risks are rising for the U.S., Mexico, and Canada, with businesses and policymakers struggling to navigate the unpredictable effects of new tariffs. The survey suggested that recession risks are mounting across all three countries.
Against this backdrop, gold remains in demand as a safe-haven asset.
Dollar Weakness Supports Gold Prices
The U.S. Dollar Index slipped 0.2% in Asian trading, holding near a four-month low, making gold more appealing to international buyers.
All eyes are now on the Federal Reserve’s upcoming policy meeting, scheduled for March 18-19. Investors are awaiting February’s CPI data, the last key economic indicator before the Fed’s rate decision, to assess potential changes in monetary policy.