Gold prices inched higher on Monday, supported by a weaker dollar and safe-haven flows amid fears of a global trade conflict, while investors awaited further signals to gauge the US Federal Reserve's interest rate stance.

Spot gold was up 0.1 percent at US$2,911.71 (HK$22,626.42) an ounce, while US gold futures firmed 0.1 percent to US$2,917.90.

The US dollar index hovered near a four-month low hit last week, making greenback-priced gold less expensive for overseas buyers.

"There are mounting downside risks to growth, while US foreign policy is also a source of uncertainty, boosting the appeal for gold," Capital.com's financial market analyst Kyle Rodda said.

"I think US$3,000 is a level we'll breach soon - probably in the next couple of months at the latest."

US President Donald Trump declined to predict whether the US could face a recession amid stock market concerns about his tariff actions on Mexico, Canada and China over fentanyl.

Seesaw tariff announcements have unnerved Wall Street as investors say flip-flopping moves by the Trump administration to roll back levies on trading partners are causing confusion rather than bringing relief.

Trump imposed new 25 percent tariffs on imports from Mexico and Canada last Tuesday, along with fresh duties on Chinese goods.

He later exempted many imports from Mexico and some from Canada from those tariffs for a month, creating uncertainty in the markets and fanning worries about US inflation and growth.

Tariffs have been a key concern for investors, with many believing that they can harm economic growth and be inflationary.

Investors now await US Consumer Price Index data on Wednesday and Producer Price Index data on Thursday.

Gold is seen as a hedge against political risks and inflation, but higher interest rates dull the non-yielding asset's allure.

Spot silver fell 0.4 percent to US$32.42 an ounce, platinum added 0.2 percent to US$965.15, and palladium eased 0.1 percent to US$949.21.

REUTERS

A view shows granules of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS

Gold edges higher on dollar weakness, safe-haven flows