Gold Price Forecast: XAU/USD rises to near record high below $3,100 amid global uncertainty

Gold price climbs to near $3,090 in Monday’s early Asian session. 

Escalating global trade tensions and economic uncertainties boost the safe-haven flows, supporting Gold price. 

Traders brace for the US March ISM Manufacturing PMI data, which is due later on Tuesday. 

The Gold price (XAU/USD) gains momentum to around $3,090 during the early Asian session on Monday. The precious metal maintains its uptrend near a record high amid fears of a global trade war triggered by US President Donald Trump's latest tariffs.

Trump last week announced a 25% tariff on imported cars and light trucks set to take effect on April 3. This measure comes on top of a flat 25% tariff on steel and aluminum and Trump's impending reciprocal tariff announcement on Wednesday. The ongoing fears related to trade wars and global economic uncertainty boost the yellow metal, a traditional safe-haven asset. 

Data released by the Bureau of Economic Analysis on Friday showed that the US core Personal Consumption Expenditures (PCE) Price Index rose 0.4% MoM in February, compared to 0.3% in January. This figure came in hotter than the expectation of 0.3%. On an annual basis, the core PCE jumped 2.8% in February versus 2.7% prior (revised from 2.6%). 

The report suggested sticky inflation in the US economy. Nonetheless, Trump’s aggressive trade policy raises concerns that the economy may fall into stagflation or even recession. This, in turn, undermines the Greenback and lifts the USD-denominated commodity price. 

Traders will keep an eye on the US ISM Manufacturing Purchasing Managers Index (PMI) for March, which is due later on Tuesday. If the report shows a stronger-than-expected outcome, this could underpin the US Dollar (USD) and cap the upside for the Gold price.