Gold rises amid weakening dollar and US trade talks

Gold prices rose on Monday amid a weakening dollar. Investors monitored the development of US trade talks and awaited potential factors capable of influencing market movement, including the Fed meeting scheduled for next week, writes UNN with reference to Reuters.

DetailsSpot gold prices rose 0.6% to $3368.39 per ounce at 05:34 GMT (08:34 Kyiv time). US gold futures rose 0.5% to $3376.

“The dollar started the week subdued, which opened the door for early gold gains as tariff deadlines approached,” said KCM Trade chief market analyst Tim Waterer.

“The closer we get to the key August 1 deadline, with no new trade deals concluded, the higher the probability that gold will start jumping again to the $3400 level and possibly higher,” he noted.

The dollar index weakened by 0.1% against other currencies, making gold less expensive for holders of other currencies.

Investors are monitoring the development of trade talks ahead of US President Donald Trump’s August 1 deadline, as US Commerce Secretary Howard Lutnick remains optimistic about reaching a deal with the EU.

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Trump is reportedly considering visiting China before the Asia-Pacific Economic Cooperation summit from October 30 to November 1 or meeting with Chinese leader Xi Jinping on the sidelines of the APEC summit in South Korea.

The European Central Bank is expected to keep interest rates at 2.0% at its meeting this week, following a series of cuts.

Last week, top Fed official Christopher Waller said he still believes the US central bank should cut rates at its meeting next week.

Gold, often considered a safe-haven asset during economic uncertainty, typically performs well in a low-interest-rate environment.

In Japan, the ruling coalition lost control of the upper house of parliament in Sunday’s elections, further weakening Prime Minister Shigeru Ishiba’s position ahead of the deadline for the introduction of tariffs in the US.

Spot silver prices rose 0.3% to $38.28 per ounce, platinum rose 0.5% to $1429.08, and palladium rose 1.6% to $1259.93.

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