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Gold Edges Lower as Dollar Firms, Traders Await Fresh Catalysts

A gold seller analyzes gold coins in the gold shop 'Cap Or Numismatique' in Nice, France, 19 March 2025. EPA/SEBASTIEN NOGIER
A gold seller analyzes gold coins in the gold shop 'Cap Or Numismatique' in Nice, France, 19 March 2025. EPA/SEBASTIEN NOGIER
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Gold Edges Lower as Dollar Firms, Traders Await Fresh Catalysts

A gold seller analyzes gold coins in the gold shop 'Cap Or Numismatique' in Nice, France, 19 March 2025. EPA/SEBASTIEN NOGIER
A gold seller analyzes gold coins in the gold shop 'Cap Or Numismatique' in Nice, France, 19 March 2025. EPA/SEBASTIEN NOGIER

Gold dipped on Monday as the dollar strengthened, while traders awaited fresh catalysts after a recent rally pushed prices to record highs, fueled by geopolitical concerns and hopes of US rate cuts.

Spot gold was down 0.1% at $3,022.21 an ounce, as of 0526 GMT. US gold futures rose 0.2% to $3,026.30.

Gold reached a record high of $3,057.21/oz on Thursday.

The dollar index was hovering near its highest level since March 7, making greenback-priced gold less affordable for overseas buyers.

"Gold is still well-positioned for further upside if markets remain edgy about the possible negative growth effects of tariffs, but this could be partially offset if a Russia-Ukraine ceasefire deal comes closer to fruition," KCM Trade chief market analyst Tim Waterer said.

A US delegation will seek a ceasefire in the Black Sea and broader peace in Ukraine during talks with Russia on Monday. Meanwhile, an Israeli airstrike on a hospital in Gaza on Sunday killed five people, including a Hamas political leader.

US President Donald Trump announced reciprocal tariffs set to take effect on April 2, likely to drive inflation and hinder economic growth.

However, Trump hinted on Friday there would be some flexibility regarding tariffs.

"President Trump has left some wiggle room for the reciprocal tariffs to potentially be less severe than feared, which has lowered market anxiety to a degree but ... it has also sapped the gold price of a bit of momentum," Waterer said.

Zero-yield bullion is seen as a hedge against geopolitical turmoil, economic uncertainties, and inflation.

The US Federal Reserve held its benchmark rate steady in the 4.25%-4.50% range last week. Policymakers see two quarter-percentage-point cuts by 2025-end.

Spot silver firmed 0.4% to $33.16 an ounce, platinum was steady at $974.98, and palladium added 0.3% to $960.62.

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Saudi Trade Surplus Hits 10-Month High as Imports Decline

King Abdulaziz Port in Dammam, Eastern Saudi Arabia (Asharq Al-Awsat)
King Abdulaziz Port in Dammam, Eastern Saudi Arabia (Asharq Al-Awsat)
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Saudi Trade Surplus Hits 10-Month High as Imports Decline

King Abdulaziz Port in Dammam, Eastern Saudi Arabia (Asharq Al-Awsat)
King Abdulaziz Port in Dammam, Eastern Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia posted its highest trade surplus in 10 months in February, buoyed by a sharp drop in merchandise imports, a trend that supports state revenues, bolsters currency stability, and reflects strong global demand for locally produced goods.

The Kingdom recorded a trade surplus of 31 billion riyals ($8.26 billion) in February, up 44.6% from 21 billion riyals in January and higher than the 29 billion riyals recorded in the same month last year, data from the General Authority for Statistics showed.

The surge came despite a slight dip in exports, as merchandise imports fell by 5.6% month-on-month to 63 billion riyals ($16.7 billion) — the lowest level since late 2023. Meanwhile, merchandise exports stood at 94 billion riyals ($18.3 billion), down from 97 billion riyals in January.

Saudi Arabia’s non-oil exports, including re-exports, rose 14.3% year-on-year in February to 26 billion riyals ($6.9 billion), up from 23 billion riyals in the same month last year, driven by ongoing efforts to boost domestic industry and global market access.

The growth comes as the Kingdom steps up its “Made in Saudi” initiative, aimed at helping local companies expand operations, tap new customer bases, and market their products to a wider audience. The program is part of Riyadh’s broader push to diversify the economy and reduce reliance on oil.

Trade experts say the rise in exports relative to imports is supported by a mix of financial incentives, export facilitation, and expanded logistics infrastructure across air, land and sea.

China remained Saudi Arabia’s largest export destination in February, accounting for 16.2% of total exports. South Korea followed with 10.1%, and the United Arab Emirates came third with 9%.

Dr. Fawaz Alamy, an international trade expert, told Asharq Al-Awsat that the trade surplus reflects the Kingdom’s successful policies to stimulate the private sector and boost the competitiveness of national products abroad. He said recent regulatory reforms have eliminated key obstacles for exporters and helped create entities that support global expansion.

He added that government agencies are working closely with the private sector by providing consulting services, financing, and market targeting strategies to facilitate international trade.

“Saudi Arabia’s non-oil activities are now growing steadily and contributing more than 50% to GDP,” Alamy said, noting this aligns with Vision 2030 goals to build a diversified and thriving economy.

Economic analyst Ahmed Al-Shehri echoed the sentiment, saying February’s trade surplus highlights the success of government collaboration in enhancing the export environment, overcoming exporter challenges, and improving export-related knowledge and talent.

He added that authorities continue to support the private sector and create an attractive environment for local and foreign investment. “In recent years, the government has worked to understand and remove the challenges facing domestic companies to ensure they can drive economic growth,” Al-Shehri said.

He noted that the non-oil sector’s contribution to GDP is now around 50%, adding: “Government agencies are actively helping manufacturers and exporters identify global market opportunities and deliver tailored support.”