Gold prices moved higher in early Asian trading on Monday, staging a modest rebound from a one-month low as a weakening U.S. dollar boosted demand. However, the recovery in the precious metal was tempered by easing geopolitical risks and growing optimism surrounding major trade developments.
As of 02:00 ET, spot gold rose 0.5% to $3,290.25 per ounce, while August gold futures advanced 0.4% to $3,300.00. This follows a nearly 3% drop last week—the steepest weekly decline since early May—driven by diminishing safe-haven interest after a ceasefire between Israel and Iran.
Dollar Slide Lifts Gold, Trade Progress Curbs Gains
The recent truce, brokered by U.S. President Donald Trump, has significantly eased market concerns over Middle East tensions, reducing investor appetite for safe-haven assets like gold. At the same time, sentiment in financial markets was buoyed by progress in international trade talks.
In Geneva, U.S. and Chinese officials finalized an agreement over rare-earth materials, a crucial component in high-tech manufacturing, which includes the easing of export controls and some tariff reductions. Meanwhile, a newly implemented trade agreement between the U.S. and U.K. has lowered auto tariffs to 10% and completely eliminated levies on aerospace parts.
Despite the positive developments, uncertainty lingers. Investors are watching closely as a July 9 deadline approaches, when broader tariffs on global metals and select trading partners could be reinstated, potentially reigniting market volatility.
Gold also drew support from a weaker U.S. dollar, which lost 0.2% during Asian hours and hovered near a three-year low. The softer greenback increased expectations of a Federal Reserve rate cut by September, further underpinning gold’s appeal.
Mixed Action Across Metals; Platinum Continues to Shine
In other precious and industrial metals, price movements were mixed. Platinum surged 1.9% to $1,377.00, building on strong momentum that has put the metal on track for a monthly gain of over 30%, recovering from recent highs not seen in over a decade.
Silver was largely unchanged, trading near $36.05 per ounce, while copper saw moderate gains. London Metal Exchange copper held firm at $9,888.95 per ton, and U.S. copper futures edged up 0.7% to $5.13 per pound.
However, copper’s upside was limited as China’s latest manufacturing data pointed to contraction in June, highlighting ongoing pressure from sluggish global demand and elevated U.S. tariffs on Chinese goods.