Gold prices rose on Monday as a softer U.S. dollar and upcoming U.S.-China trade negotiations fueled investor interest in safe-haven assets. Platinum extended its winning streak to six sessions, hitting its highest level in four years.
As of 0806 GMT, spot gold climbed 0.4% to $3,323.71 per ounce, recovering after an earlier dip to $3,293.29 — its lowest point since June 2. U.S. gold futures remained steady at $3,344.70.
The U.S. dollar weakened by 0.3% against a basket of major currencies, making gold more affordable for investors using other currencies.
“Key drivers of gold, such as trade and geopolitical tensions, debt concerns, and sluggish economic growth, are still present and should support the metal going forward,” said Giovanni Staunovo, an analyst at UBS.
Investors are closely watching high-level trade talks between the United States and China, scheduled to take place in London on Monday. The discussions aim to ease the intensifying trade conflict, which has moved beyond tariffs into export controls on goods vital to global supply chains.
Meanwhile, strong U.S. non-farm payroll data has led investors to revise their outlook for Federal Reserve interest rate cuts this year — now expecting only one cut in October, down from two previously projected.
Market focus now turns to Wednesday’s release of U.S. Consumer Price Index (CPI) data, which may offer more insight into the Fed’s monetary policy direction. Gold typically performs well during times of economic uncertainty and benefits from lower interest rates.
Adding to the bullish outlook, official data revealed that China’s central bank increased its gold reserves in May for the seventh consecutive month.
Among other precious metals, platinum surged 3% to $1,210.80 per ounce — its highest level since May 2021. “The rally in platinum is driven by a mix of tight supply forecasts, improving industrial sentiment, and momentum from the broader precious metals market,” said Alexander Zumpfe, a trader at Heraeus Metals Germany.
Spot silver also gained 1% to $36.30 per ounce, while palladium rose 2.3% to $1,070.97.
