Gold steady as markets await Trump-Putin talk

Asian Markets

The week started with a mixed tone as investors digested fresh economic data out of China. Retail sales expanded by 4% in February, slightly outpacing expectations of 3.8%, while industrial production rose 5.9%, surpassing the projected 5.3% increase. However, persistent softness in the property sector, marked by another 0.14% decline in home prices, kept optimism in check. Adding to concerns, China’s unemployment rate climbed to 5.4%, exceeding the expected 5.1%, raising questions about the strength of the labor market.

Investors are looking ahead to a key press conference from Chinese government officials later today, where policymakers are expected to announce new stimulus measures aimed at shoring up domestic demand.

On the geopolitical front, U.S. President Donald Trump is scheduled to speak with Russian President Vladimir Putin on Tuesday, a development that could have implications for global markets amid ongoing tensions in energy and defense sectors.

Currencies

The EUR/USD pair traded steadily around 1.0880 during Asian hours as the U.S. Dollar (USD) held its ground, awaiting Monday’s Retail Sales report. However, the Greenback faced pressure following a weaker-than-expected University of Michigan Consumer Sentiment Index, which dropped to 57.9 in March, its lowest level since November 2022 and well below forecasts of 63.1.

The JPY remains under pressure against the U.S. Dollar heading into the European session, as China’s latest stimulus measures slightly improve global risk sentiment, reducing demand for safe-haven assets. However, expectations that the Bank of Japan (BoJ) may continue raising interest rates are preventing a deeper slide, keeping JPY bears cautious.

Gold

Gold (XAU/USD) found support on Monday as dip-buying emerged, keeping the yellow metal elevated just below its all-time highs above $3,000 per ounce.