WASHINGTON (dpa-AFX) - Gold futures settled notably higher on Monday, recovering after two successive days of losses, as the dollar drifted down amid prospects of the Federal Reserve cutting interest rates earlier as it is feared that the U.S. trade war may hurt global growth and spark recession in some countries.
Uncertainty about prospects of peace in Ukraine, and last week's disappointing U.S. economic data weighed as well on the dollar.
The dollar index dropped to 106.47, before recovering a bit. At 106.60, the index was down 0.95% a little while ago.
Gold futures for March closed higher by $53.40 or about 1.88% at $2,890.20 an ounce.
Silver futures for March settled at $32.032 an ounce, up $0.813 or about 2.6%, while Copper futures for March climbed to $4.5830 per pound, gaining $0.0685 or about 1.52%.
U.S. President Donald Trump said last week that his proposed 25% tariffs on Mexican and Canadian goods will take effect on March 4 along with an extra 10% duty on Chinese imports over the fentanyl opioid crisis.
U.S. Commerce Secretary Howard Lutnick on Sunday said that the tariffs on Mexico and Canada will go into effect as scheduled on Tuesday, but Trump will determine their exact levels before implementation.
Lutnick also indicated that an additional 10 percent tariff on Chinese imports remains on the table for Tuesday.
China is also reportedly preparing to make retaliatory moves. Chinese state media has reported that Beijing is looking to target America's agriculture exports, raising fears of an all-out trade war between the world's two largest economies.
Global Times, China's propaganda outlet controlled by the Communist party, reported that China's retaliatory measures may include both tariffs and 'a series of non-tariff measures, and US agricultural and food products will most likely be listed.'
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