Gold prices rose on Monday (3/3), after hitting a more than three-week low in the previous session, supported by a weaker dollar and safe-haven buying fueled by concerns over U.S. President Donald Trump's tariff policies.

Spot gold rose 0.5% to $2,873.93 an ounce. U.S. gold futures rose 1.3% to $2,885.

The dollar index fell 0.6% from a more than two-week high in the previous session, reflecting weakness that makes dollar-priced bullion cheaper for buyers holding other currencies.

"Gold's decline is still limited, given the clear demand for safe-haven assets amid rising geopolitical and economic uncertainty," said Han Tan, chief market analyst at Exinity Group.

Last week, Trump threatened China with additional 10% tariffs, which will take effect on Tuesday, bringing the cumulative tariffs to 20%.

Although widely seen as a hedge against geopolitical uncertainty, non-yielding gold becomes less attractive to investors when interest rates rise.

Gold fell more than 1% in the previous session, retreating from record highs hit several times this year, after U.S. inflation data suggested the Federal Reserve could take a cautious stance on rate cuts this year.

Traders are awaiting the U.S. payrolls report due later this week for further clues on Fed monetary policy.

"Our forecast for gold to reach $3,000/oz this year is unchanged," UBS analysts wrote, adding that gold could reach as high as $3,200 under certain risk-on scenarios.

"We see scope for further gains in silver as the gold rally consolidates and global industrial production signals a moderate recovery."

Spot silver rose 1.2% to $31.52 an ounce, platinum rose 0.8% to $955.5 and palladium gained 1.5% to $933.09. (Newsmaker23)

Source: CNBC