Spot gold was 1% firmer at $2,917.79 an ounce as of 01:16 p.m. ET (1716 GMT). U.S. gold futures settled 0.7% higher at $2,920.90.
The U.S. dollar index hit its lowest level since mid-October. A softer dollar makes greenback-priced bullion more affordable for other currency holders.
“Gold is likely to remain supported amid ongoing market uncertainties, bolstering demand for the safe-haven asset. However, any positive developments in Russia-Ukraine negotiations could reduce risk premiums,” said Zain Vawda, market analyst at MarketPulse by OANDA.
The tariff policies implemented by U.S. President Donald Trump against key trading partners have caused significant volatility in global markets and heightened concerns about economic growth.
Bullion is considered a hedge against uncertainties and tends to thrive in a low-interest environment since it is a non-yielding asset.
Market attention will be on Wednesday’s U.S. Consumer Price Index and Thursday’s Producer Price Index. According to a Reuters poll, February’s CPI is expected to have climbed 0.3%.
Traders are currently expecting the Federal Reserve to cut interest rates in June.
“The gold price is already trading at a very high level due to the sharp rise since the start of the year, which limits the upside potential,” Commerzbank said in a note.