The yellow metal hit a new high on Monday after the US began to impose tariffs on Canada, Mexico and China, which will drag investors to safe haven assets.
At 9.15 am, gold prices were at $2,817.31, up 0.09% since it opened early Tuesday in Asian trading.
The XAU/USD market sentiment found positive support with some gains since the start of the year.
Tariff action has remained the main driver of the market since Donald Trump took office as US President and the USD currency is expected to gain significant direction when the implementation of tariffs on the two trading partners and China takes place.
Meanwhile, the US Dollar Index (DXY) hit a two-week high of 109 points. However, the delay in tariffs on Mexico has caused the USD to fall again and support gold again.
Tariffs on Canada and China remain, set to start on Tuesday. However, US President Trump said he would hold talks with Canadian Prime Minister Justin Trudeau.
Turning to economic drivers, the Institute for Supply Management (ISM) revealed that US business activity in the manufacturing sector improved.
Traders will be eyeing US data with the release of US Nonfarm Payrolls (NFP) for January and speeches from several Federal Reserve (Fed) officials crossing the market's focus.
