The rise of the dollar, the fall of gold, and Trump's decisions regarding tariffs.

Gold prices dropped on Monday after the dollar hit its highest level in over two weeks, as investors assess U.S. President Donald Trump's cautious stance on imposing tariffs on trading partners. The price of gold in spot transactions fell by 0.6% to $3006.84 per ounce. U.S. gold futures dropped by 0.2% to $3015.60 per ounce at settlement. Bart Melek, head of commodity strategies at TD Securities, stated, "We keep hitting record highs one after the other, and now the market is reinforcing these gains, driven by the somewhat higher U.S. dollar." Gold, which is seen as a hedge against geopolitical and economic disruptions and inflation, hit 16 record highs this year and reached an all-time high of $3057.21 per ounce last week. The dollar also rose by 0.2%, reaching its highest level in over two weeks, making gold priced in dollars more expensive for buyers outside the United States. President Donald Trump hinted on Friday that there might be some flexibility regarding the retaliatory tariffs set to take effect on April 2nd, which are expected to lead to inflation and hinder economic growth. Meanwhile, the U.S. Federal Reserve kept interest rates unchanged last week and hinted at a quarter-point cut later this year. Investors are now awaiting data on U.S. personal consumption expenditures scheduled for release on Friday, a key measure favored by the Federal Reserve for calculating inflation.