Gold price (XAU/USD) kicks off the new week on a positive note following Friday's pullback from the vicinity of the all-time top and climbs back above the $2,900 mark during the Asian session. The US Dollar (USD) selling bias remains unabated in the wake of a delay in US President Donald Trump's reciprocal tariffs. This, along with worries that Trump's policies could trigger a global trade war, turn out to be key factors acting as a tailwind for the safe-haven precious metal.
Meanwhile, the growing market acceptance that the Federal Reserve (Fed) would stick to its hawkish stance and keep interest rates on hold for an extended period does little to dent the bullish sentiment surrounding the non-yielding Gold price. Even the optimism over talks between the US and Russia aimed at ending the war in Ukraine fails to hinder the intraday positive move. This, in turn, suggests that the path of least resistance for the XAU/USD remains to the upside.

Gold regained positive traction on Monday amid sustained USD weakness.
Concerns about Trump's tariffs further benefit the safe-haven XAU/USD pair.
The fundamental and technical setup underpin prospects for additional gains.

The US Dollar languishes near its lowest level since December 17 touched in reaction to disappointing US Retail Sales data on Friday and helps revive demand for the Gold price.
The US Census Bureau reported that Retail Sales declined by 0.9% in January, worse than the decrease of 0.1% expected and the 0.7% increase (revised from 0.4%) in December.
The markets were quick to react and are now pricing in a rate cut by the Federal Reserve in September, rather than at the end of the year, further benefiting the precious metal.
Kevin Hassett, Director of the US National Economic Council (NEC) said that a 40 basis points drop in 10-year US Treasury yield could be a sign the market expects lower inflation.
US President Donald Trump ordered officials to formulate plans for reciprocal tariffs on countries that impose taxes on US imports, though he stopped short of announcing levies.
Adding to this, Trump threatened that levies on automobiles would be coming as soon as April 2, fueling concerns about a global trade war and underpinning the XAU/USD.
With US and Russian officials expected to hold talks in Saudi Arabia, Russian troops step up their attacks in eastern Ukraine, further boosting demand for the safe-haven commodity.

Source: Fxstreet