The yellow metal gained more than 1% in Monday trading, reversing two days of losses last week as the USD was hit by safe-haven demand and falling US Treasury yields.
Geopolitical tensions and President Donald Trump's tariff threats boosted demand for gold.
At 8.50am, gold was at $2,890.72, unchanged since it opened early Tuesday in Asian trading.
Risk appetite has been further dampened following a clash between US President Donald Trump and Ukrainian President Volodymyr Zelensky on Friday.
Meanwhile, tariffs on Mexico, Canada and China are expected to take effect on Tuesday.
On the data front, business activity in the manufacturing sector in February was mixed with the S&P Global improving, while the ISM declined but continued to expand.
Meanwhile, a round of US economic data pushed Atlanta's first quarter 2025 GDP forecast further into negative territory from 1.6% on February 28 to -2.8% for now.
