Investing.com - Gold prices were higher in European morning trade on Monday, starting the week off with gains as the dollar slumped after immigration curbs introduced by U.S. President Donald Trump heightened concerns about the impact of the new administration's policies on trade and the economy.
Gold futures for April delivery on the Comex division of the New York Mercantile Exchange rose $2.35, or around 0.2%, to $1,193.45 a troy ounce by 3:00AM ET (08:00GMT).
Trump on Friday put a four-month hold on allowing refugees into the U.S. and temporarily barred travelers from Syria and six other Muslim-majority countries, saying the moves would help protect Americans from terrorist attacks.
The executive order led to huge protests in many U.S. cities and raised worries about the potentially destabilizing impact of Trump's policies.
Headlines from Washington will most likely continue to dictate market sentiment this week, as traders focus on Trump for further details on his promises of tax reform, infrastructure spending and deregulation as well as trade policies.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.1% at 100.46 in European morning trade.
Lackluster U.S. fourth-quarter growth figures also weighed on the greenback as it dampened expectations for a faster rate of interest rate hikes this year.
The annual rate of economic growth slowed to 1.9% in the three months to December the Commerce Department reported Friday, slowing sharply from the 3.5% rate of growth seen in the third quarter.
The slowdown in growth prompted speculation that the Federal Reserve will avoid hiking interest rates too quickly.
Gold is highly sensitive to rising U.S. rates, which increase the opportunity cost of holding the non-yielding asset.
Global financial markets will be busy with central bank meetings in the week ahead, with policy decisions due in the U.S., U.K. and Japan.
Investors will also keep an eye out on key economic data, with the monthly U.S. employment report and euro zone inflation data in the spotlight.
Also on the Comex, silver futures for March delivery inched up 5.2 cents, or 0.3%, to $17.18 a troy ounce.
Meanwhile, platinum futures tacked on 0.2% to $985.25, while palladium futures shed around 0.9% to $732.20 an ounce.
Elsewhere in metals trading, copper futures rose 0.6 cents, or 0.2%, to $2.694 a pound.