Gold Prices Rebound from Monthly Low on Weaker Dollar, Trade Optimism Limits Upside
Gold prices edged higher in Asian trading on Monday, rebounding from a one-month low as a softer U.S. dollar offered support. However, safe-haven demand remained subdued due to reduced geopolitical tensions in the Middle East and renewed optimism over U.S. trade agreements.
Spot gold rose 0.5% to $3,290.25 per ounce, while August gold futures gained 0.4% to $3,300.00 by 02:00 ET (06:00 GMT).
Despite Monday’s gains, gold posted a nearly 3% decline last week—its sharpest weekly drop since early May—and is on track to close the month with little change. Earlier gains, driven by geopolitical concerns, were reversed after a ceasefire between Israel and Iran was announced.
Dollar Weakness Supports Gold; Trade Developments in Focus
The truce between Israel and Iran—brokered by U.S. President Donald Trump—helped reduce geopolitical risk, diminishing gold’s appeal as a safe-haven asset.
Meanwhile, progress on multiple U.S. trade fronts improved market sentiment. A U.S.–China agreement reached in Geneva addressed rare-earth exports and eased key trade tensions, while a new U.S.–U.K. trade deal that took effect Monday reduced car tariffs to 10% and eliminated duties on aircraft components.
Still, attention is turning to a July 9 deadline, which could see tariffs reinstated on other trade partners, including levies on global steel and aluminum.
Market expectations of a Federal Reserve interest rate cut by September pushed the U.S. Dollar Index down 0.2% during Asian trading hours, keeping it near a three-year low. A weaker dollar makes gold more attractive to overseas buyers.
Broader Metal Markets See Gains, Platinum Surges
Platinum futures surged 1.9% to $1,377.00 after retreating from decade highs, putting the metal on pace for a monthly gain exceeding 30%.
Silver futures remained relatively steady at $36.045 per ounce.
In base metals, London copper futures held flat at $9,888.95 per ton, while U.S. copper futures rose 0.7% to $5.132 per pound. Gains were limited by ongoing weakness in China’s manufacturing sector, which contracted for the third straight month in June. The slowdown, compounded by sustained U.S. trade tariffs, continued to weigh on demand from the world’s largest copper importer.
