Gold prices climbed during Asian trading on Monday, recovering from a recent one-month low as the U.S. dollar softened. However, safe-haven demand remained subdued due to easing tensions in the Middle East and hopeful progress on major U.S. trade agreements.
Spot gold increased by 0.5% to $3,290.25 per ounce, while August gold futures rose 0.4% to $3,300.00 per ounce as of 02:00 ET (06:00 GMT). The precious metal had dropped nearly 3% last week, marking its sharpest weekly decline since early May. Despite these losses, gold was on track to finish the month largely unchanged after early gains sparked by geopolitical conflicts were offset by the recent Israel-Iran ceasefire.
Dollar Weakness Supports Gold, Trade Deals Influence Market Sentiment
The ceasefire brokered last week by U.S. President Donald Trump between Israel and Iran eased geopolitical risks, dampening gold’s appeal as a safe haven. On the trade front, optimism was bolstered by a recently signed U.S.-China agreement in Geneva addressing rare-earth exports and reducing some key trade barriers.
Additionally, a U.S.-U.K. trade deal came into effect Monday, cutting car tariffs to 10% and removing duties on aircraft components entirely. Nevertheless, markets remain cautious ahead of the July 9 deadline when tariffs on other trading partners, as well as global steel and aluminum tariffs, may be reinstated.
Gold also benefited from a weaker U.S. dollar, which traders increasingly expect will prompt at least one Federal Reserve rate cut by September. The U.S. Dollar Index dipped 0.2% during Asian hours, hovering near a three-year low.
Other Metals See Mixed Movements; Platinum Poised for Monthly Surge
The decline in the dollar makes gold and other commodities more affordable to buyers using other currencies, driving demand upward. Platinum futures surged 1.9% to $1,377.00 following a recent pullback from a decade-high, positioning the metal for a gain exceeding 30% this month.
Silver futures remained relatively flat, trading around $36.05 per ounce. Copper futures on the London Metal Exchange held steady at $9,888.95 per ton, while U.S. copper futures edged up 0.7% to $5.13 per pound.
Copper gains were limited amid reports that China’s manufacturing sector contracted in June, signaling continued weakness in external demand against the backdrop of ongoing elevated U.S. tariffs impacting the world’s largest copper consumer.
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