• The price of gold is gaining up to around 2865 USD in the Monday Asian session.
• Trump will announce mutual tariffs for many countries next week.
• The Chinese central bank extended its gold reserves for the third month in January.

The price of gold (Xau/USD) extends the rally to around USD 2,865 during the early Asian session on Monday. Noble metal above the edge, because the escalation commercial tensions prompted investors to look for shelter in unthreatening resources.

US President Donald Trump said on Friday that he plans to announce mutual tariffs for many countries until Tuesday or Wednesdays, which have entered into force almost immediately. This, in turn, provides yellow metal support. Investors will strictly monitor the development of a trade war threat. “The central goal of the gold market is still uncertainty in relation to Trump’s tariff policy,” said David Meger, Metals Trade Director at High Ridge Futures.

In addition, the People’s Bank of China (PBOC) added gold to its reserves in January the third month, raising the price of gold, because China is the world’s largest consumer. Chinese gold reserves amounted to 73.45 million ounces of Troy at the end of January, compared to 73.29 million a month earlier. “PBOC will probably still diversify its reserves in the long run, taking into account the growing geopolitical uncertainty,” said David Qu, an economist from Bloomberg Economics.

On the other hand, the data published on Friday by the Department of Work suggested that the labor market remains robust, which may prevent the Federal Reserve (FED) to reduce the interest rate. The US economy added 143,000 jobs in January, compared to an enhance of 170,000 expected by economists. Meanwhile, the unemployment rate dropped lower to 4.0% compared to 4.1% earlier, compared to the expectations of 4.1%. Traders now expect that the American central bank will reduce interest rates only once this year. This can raise Greenback and weigh the price of goods denominated by USD.