09:18 AM EDT, 03/11/2025 (MT Newswires) -- Gold traded higher early on Tuesday following two losing sessions as the dollar dropped to a five-month low.

Gold for April delivery was last seen up US$21.90 to US$2,921.30 per ounce.

The price of the metal remains near its Feb. 24 record high of US$2,963.20, supported by safe-haven buying amid a slowing U.S. economy and geopolitical turmoil as U.S. President Donald Trump threatens tariffs against Canada and Mexico, the largest U.S. trading partners. Trump already doubled the import tax on goods from China to 20%.

"Given the strength of the recent rally, gold can drop to USD 2,813 without damaging the technical outlook. Investors are watching US inflation data for Federal Reserve insights," Saxo Bank noted.

The ICE dollar index was last seen down 0.47 points to 103.37, the lowest since Oct.15. Treasury yields rose, with the U.S. two-year note last seen paying 3.906%, up 1.2 basis points, while the yield on the 10-year note was up 1.9 points to 4.235%.