Gold Price Forecast: XAU/USD attracts some sellers below $2,950 on profit-taking

Gold price loses momentum to around $2,925 in Monday’s early Asian session, losing 0.38% on the day. 

Investors take profits from Gold after reaching the previous session's record high. 

Fears of a global trade war sparked by Trump might keep demand for the safe-haven elevated.

Gold price (XAU/USD) drifts lower to near $2,925 during the Asian trading hours on Monday. The precious metal eases from a record high on profit-taking. However, the uncertainty and concerns over US President Donald Trump's tariff plans might cap the downside for Gold price. 

The yellow metal faces some selling pressure after retreating from an all-time high of $2,954 last week. "It's just a classical movement of new all-time highs and profit-taking... (but) the fundamentals for gold remain solid," said Alex Ebkarian, chief operating officer at Allegiance Gold.

The uncertainties surrounding global economic growth and political instability have underscored investor appetite for bullion. Last week, Trump said that he will announce new tariffs within the next month, adding lumber and forest products to previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals. 

“Ongoing trade tensions continue to stoke inflation and growth concerns, and therefore safe-haven interest in gold,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.

On the other hand, Minutes of the Federal Reserve’s (Fed) January meeting released last week showed that Trump’s initial policy proposals had stoked concerns over rising inflation, reinforcing the Fed’s stance to hold off on further rate cuts. This, in turn, could lift the Greenback and weigh on the USD-denominated commodity price in the near term.