PRECIOUS-Gold gains on softer dollar; traders await Trump's tariff plans

• Trump says levies on automobiles coming soon
• U.S. dollar hovers near two-month low
• Silver hit highest level since October 31 on Friday

Feb 17 (Reuters) - Gold prices rose on Monday as the dollar weakened after U.S. retail sales fell in January, while investors await details on President Donald Trump's reciprocal tariff plans, which could heighten the potential for a global trade war.

Spot gold XAU= was up 0.6% at $2,900.60 per ounce, as of 0714 GMT. U.S. gold futures GCcv1 gained 0.4% to $2,911.80.

The dollar index .DXY hovered near a two-month low on weaker-than-expected U.S retail data for January.USD/

A weaker dollar makes bullion more affordable for holders of other currencies.

Gold is being supported by the dollar's weakness and uncertainty over how Trump will engage with major trading partners in enforcing his tariff policy, said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA.

Trump renewed his tariff threats on Friday, saying that levies on automobiles would be imposed as early as April 2, soon after he instructed officials to study reciprocal tariffs against countries that impose duties on U.S. goods.

Meanwhile, U.S. Secretary of State Marco Rubio arrives in Saudi Arabia on Monday ahead of expected talks with Russian officials, aimed at ending Moscow's nearly three-year war in Ukraine.

"If talks between U.S. and Russian officials improve the odds for a peace deal being reached that ends the war, safe-haven buying demand could wane, which could see gold lose some of its impetus," said Tim Waterer, chief market analyst at KCM Trade.

"But with tariff and inflation talk still a worry for investors, gold could still rally even if safe-haven flows recede."

Bullion is viewed as a hedge against rising prices and geopolitical uncertainties.

Spot silver XAG= rose 0.2% to $32.21 an ounce on the day, after hitting its highest level since October 31 on Friday, latching on to factors that drove gold to successive record highs. Some analysts suggested investors in the metal may aim to challenge a 10-year high.

Platinum XPT= gained 0.7% to $988.75 and palladium XPD= jumped 2.1% to $981.16.

Spot gold price in USD per oz https://reut.rs/3QoOs9f