Gold gains as dollar weakens as US-China talks in focus
Gold prices rose on Monday, supported by a weaker US dollar ahead of US-China trade talks aimed at resolving tensions, while platinum extended gains for a sixth straight session to hit a four-year peak.
Spot gold was up 0.3% at $3,318.76 an ounce, as of 1007 GMT, after dropping earlier in the session to $3,293.29, its lowest since June 2.
Investors are aware that gold’s drivers, including trade and geopolitical tensions, debt concerns and weak economic growth, remain and will continue to support the metal in the coming months, said Giovanni Staunovo, an analyst at UBS.
U.S. and Chinese officials are due to sit down in London on Monday for talks aimed at defusing the trade dispute between the two superpowers. Stronger-than-expected U.S. nonfarm payrolls data has led investors to scale back expectations for a Federal Reserve interest rate cut this year from two to one in October.
Market attention will turn to U.S. CPI data, due on Wednesday, for further clues on the Fed’s monetary policy path.
Gold, considered a safe haven during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment.
Meanwhile, China’s central bank added gold to its reserves in May for the seventh straight month, official data showed.
Spot platinum rose 3.1% to $1,201.75, its highest since May 2021.
“(Platinum’s rise) is supported by a combination of tight supply expectations, improving industrial sentiment and technical follow-through from a broader precious metals rally,” said Alexander Zumpfe, precious metals trader at Heraeus Metals Germany. Spot silver rose 1% to $36.30 an ounce, while palladium gained 2.7% to $1,074.76.
Source: Reuters
