Gold prices ticked up slightly in Asian trading on Monday, though the precious metal remained under pressure following two straight weeks of losses. Uncertainty over the U.S. Federal Reserve’s rate outlook and easing global trade tensions have both weighed on investor demand for safe-haven assets.
Spot gold rose 0.4% to $4,017.13 an ounce by 01:19 ET (06:19 GMT), while U.S. gold futures gained 0.8% to $4,027.55. Despite the modest rebound, gold fell more than 2% last week—its second consecutive weekly decline—though it still posted a 4% gain for October overall.
Fed Caution and Trade Optimism Pressure Bullion
The metal’s softness comes despite the Fed’s recent 25-basis-point rate cut, a move that typically supports non-yielding assets like gold. However, Fed Chair Jerome Powell said additional rate cuts were “not a foregone conclusion,” dampening investor optimism. His remarks, echoed by other central bank officials, have led markets to scale back expectations for another cut in December, boosting the U.S. dollar and exerting downward pressure on bullion.
The U.S. Dollar Index hovered near three-month highs early Monday, making gold more expensive for non-U.S. buyers.
Meanwhile, easing geopolitical tensions also limited demand for safe-haven assets. A meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Busan last week ended with both leaders agreeing to reduce trade barriers. The discussions reportedly included a preliminary framework for U.S. tariff reductions and Chinese commitments to increase imports of American goods.
While the talks stopped short of a full trade deal, the detente helped calm markets after months of escalating friction between the world’s two largest economies, further curbing gold’s appeal.
Other Precious Metals Advance; Copper Slips on Weak China Data
Elsewhere in the metals market, silver futures rose 1.1% to $48.705 per ounce, and platinum futures jumped 1.8% to $1,603.60 per ounce. Industrial metals were mixed, with benchmark copper futures on the London Metal Exchange steady at $10,903.20 a ton, while U.S. copper futures edged down 0.1% to $5.11 a pound.
A private survey released Monday showed that China’s manufacturing sector expanded at a slower-than-expected pace in October, as weaker prices and a softening economic outlook continued to weigh on factory activity.
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