Gold prices inched higher on Monday, supported by a weaker dollar and safe-haven flows amid fears of a global trade conflict, while investors awaited further signals to gauge the U.S. Federal Reserve's interest rate stance.

Spot gold was up 0.1% at $2,912.79 an ounce, as of 0243 GMT, while U.S. gold futures rose 0.2% to $2,919.40.

The dollar index hovered near a four-month low hit last week, making greenback-priced gold less expensive for overseas buyers.

"There are mounting downside risks to growth, while U.S. foreign policy is also a source of uncertainty, boosting the appeal for gold," Capital.com's financial market analyst Kyle Rodda said.

"I think $3,000 is a level we'll breach soon - probably in the next couple of months at the latest."

U.S. President Donald Trump declined to predict whether the U.S. could face a recession amid stock market concerns about his tariff actions on Mexico, Canada and China over fentanyl.

Seesaw tariff announcements have unnerved Wall Street as investors say flip-flopping moves by the Trump administration to roll back levies on trading partners are causing confusion rather than bringing relief.

Trump imposed new 25% tariffs on imports from Mexico and Canada last Tuesday, along with fresh duties on Chinese goods.

He later exempted many imports from Mexico and some from Canada from those tariffs for a month, creating uncertainty in the markets and fanning worries about U.S. inflation and growth.

Tariffs have been a key concern for investors, with many believing that they can harm economic growth and be inflationary.

Investors now await U.S. Consumer Price Index (CPI) data on Wednesday and Producer Price Index (PPI) data on Thursday.

Gold is seen as a hedge against political risks and inflation, but higher interest rates dull the non-yielding asset's allure.

Spot silver fell 0.3% to $32.42 an ounce, platinum was steady at $962.55, and palladium lost 0.4% to $944.73.

(Reporting by Anjana Anil in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)