Gold (GC=F) rose after last week’s sharp correction, with investors weighing the economic outlook as US President Donald Trump prepares to implement import levies against key trade partners. Bullion traded above $2,860 an ounce, after notching its first weekly loss of 2025 as some traders booked profits following a record-breaking start to the year. Trump is on the verge of hitting Canada and Mexico with 25% tariffs as soon as this week, and is planning on doubling a levy on China. There’s increasing concern the moves will undermine a US economy that already showing signs of cooling — a scenario which underscores the precious metal’s haven status.

Worries over the economy have boosted market expectations for Federal Reserve interest-rate cuts, which would also add to bullion’s appeal as a non-yielding asset.

“The upcoming US payrolls report is poised to shed light on the health of the employment market,” said Priyanka Sachdeva, analyst at Phillip Nova Pte Ltd. “Weak figures could prompt the Federal Reserve to consider rate cuts, further supporting gold prices.”

At the same time, investors remain concerned about inflation, as Trump’s proposed tariffs threaten to keep price pressures elevated — a view that saw the dollar (DX-Y.NYB) surge last week. A stronger greenback makes dollar-denominated gold more expensive for foreign investors.

Recent US data has stoked fears the US may be entering a period of stagflation, when an economy faces both tepid growth and elevated prices. That could support gold, an asset regarded as a store of value in uncertain times.

Spot gold rose 0.2% to $2,862.61 an ounce at 7:16 a.m. in London, after ending last week 2.7% lower.