Gold rose on Monday, supported by a weaker dollar and safe-haven inflows amid concerns about an escalating global trade war, while investors awaited further signals to gauge the Federal Reserve's interest rate stance.

Spot gold was up 0.1% at $2,914.00 an ounce by 0701 GMT, while U.S. gold futures were up 0.2% at $2,920.10.

The dollar index (.DXY), opens a new tab , hovered near a four-month low hit last week, making dollar-priced bullion cheaper for overseas buyers.

"There are increasing downside risks to growth, while U.S. foreign policy is also a source of uncertainty, which adds to the appeal of gold," said Kyle Rodda, financial markets analyst at Capital.com.

"I think $3,000 is a level we're going to break through, probably within the next couple of months at the latest." US President Donald Trump on Sunday declined to predict whether the US is headed for a recession amid stock market concerns about his tariffs on Mexico, Canada and China over fentanyl. The series of tariff announcements have unsettled Wall Street as investors say the Trump administration's erratic moves to lift levies on trading partners have created confusion rather than relief.

Trump imposed new tariffs of 25% on imports from Mexico and Canada on Tuesday, along with new duties on Chinese goods. He then exempted many imports from Mexico and some from Canada from tariffs for a month, creating uncertainty in markets and stoking concerns about US inflation and slowing growth. Tariffs have been a major concern for investors, with many believing they could hurt economic growth and become inflationary.

Investors now await US Consumer Price Index (CPI) data due on Wednesday and Producer Price Index (PPI) data expected on Thursday. Gold is seen as a hedge against political and inflation risks, but higher interest rates reduce the appeal of non-yielding assets. Spot silver fell 0.2% to $32.45 an ounce, while platinum was steady at $963.37. Palladium was also unchanged at $948.64. (Newsmaker23)

Source: Reuters