A weaker US dollar, which fell to a four-month low, made gold more attractive to foreign buyers​. The greenback’s decline was driven by a weaker-than-expected non-farm payrolls (NFP) report and growing speculation about Fed rate cuts​.

China continued its gold-buying spree for a fourth consecutive month in February, signaling ongoing central bank demand for the metal​. Meanwhile, geopolitical risks and trade uncertainty provided further safe-haven support.

US Jobs Data and Fed Signals Shape Gold’s Outlook

The US labor market showed signs of cooling, with February’s NFP data revealing 151,000 jobs added, below the forecasted 160,000​. This report reinforced market expectations that the Fed could begin rate cuts by June, with futures pricing in about 78 basis points of easing this year​.

However, Federal Reserve Chair Jerome Powell struck a cautious tone, stating that the central bank needs “greater clarity” before making any moves on interest rates​. Inflation concerns remain a key issue, with upcoming CPI data expected to provide fresh insight into whether price pressures are cooling​.

Tariff Uncertainty and Economic Sentiment in Focus

Trade tensions continue to be a major factor influencing gold. The US recently imposed fresh 25% tariffs on imports from Mexico and Canada, along with increased duties on Chinese goods​. A temporary exemption on auto tariffs for certain manufacturers has added complexity, leaving markets uncertain about the long-term trade policy outlook​.