Gold price prints a fresh record high above $3,380 in the Asian session on Monday, within reach of the $3,400 level. Uncertainty about US President Donald Trump's tariff policies and concerns over the Fed's independence continue to drive safe-haven flows into Gold price.
Following a brief corrective pullback on Friday due to profit-taking ahead of the Easter weekend, Gold buyers are back with a bang early Monday. The bright metal resumes its record run, targeting the $3,400 threshold as the US Dollar (USD) is smashed to a three-year low against its major currency rivals on heightened risk of a US recession, induced by the US-China trade war.

The US-China trade war witnessed a significant escalation over the weekend after a Boeing jet intended for use by a Chinese airline landed back at the plane maker's US production hub due to China's retaliatory move.

This came after US President Donald Trump ordered a probe into the potential new tariffs on all critical minerals imports from the industry leader China. US dependency on minerals imports "raises the potential for risks to national security, defense readiness, price stability, and economic prosperity and resilience," Trump said in an order directing Commerce Secretary Howard Lutnick to begin a national security review under Section 232 of the Trade Expansion Act of 1962.

Further, the Greenback remains vulnerable also as the US Federal Reserve's (Fed) independence is threatened. "White House Economic Adviser Kevin Hassett said Friday that Trump and his team were studying if they could fire Federal Reserve Chair Jerome Powell, a sign that such a move, a matter of great consequence for the central bank's independence and global markets, is still an option," per Reuters.

A broadly softer US Dollar and increased haven demand continue to bode well for the traditional safe-haven Gold price. In the day ahead, Gold price could be subject to intense volatility as trading conditions remain thin on account of Easter Monday.

However, all ears will likely be on any tariff headlines from the Trump administration and speeches from Fed policymakers for fresh trading impetus in Gold price.

It's a relatively light week, in terms of US economic data, and hence, Gold price will remain at the mercy of Trump's trade talks, risk sentiment and Fedspeak until the release of the S&P Global US flash PMI readings.

Source: fxstret