Gold edges up with spotlight on US-China trade talk
Gold prices edged higher on Monday, supported by a weaker U.S. dollar, as market participants kept a close eye on the ongoing U.S.-China trade talks.
Spot gold rose 0.3% to $3,320.15 an ounce, as of 0956 ET (1356 GMT), after dropping to an over one-week low earlier in the session. U.S. gold futures fell 0.1% to $3,341.90.
The U.S. dollar index remained subdued, making greenback-priced bullion cheaper for other currency holders.
Senior U.S. and Chinese officials meet in London to discuss tit-for-tat tariffs imposed on each others products this year along with other trade restrictions. Last month, the two sides had agreed to a temporary pause, providing some relief to investors.
"In the short term, if there is a positive outcome of the meeting, it could be a little negative for gold, but not too much, said Bart Melek, head of commodity strategies at TD Securities.
"I think a weaker economy, likely interest rate cuts and lower momentum on the risk appetite side is getting people to move into gold. And, of course expectations of higher inflation."
Elsewhere, Russia said that its forces had taken control of more territory in Ukraine's east-central region of Dnipropetrovsk, where the Kremlin said fighting was partly aimed at creating a "buffer zone."
Safe-haven gold becomes more attractive during periods of geopolitical and economic uncertainty. It also tends to thrive in a low-interest rate environment as it is a non-yielding asset.
Investors also await U.S. Consumer Price Index (CPI) data due on Friday, to gauge the country's economic health and predict the Federal Reserve's rate cut trajectory.
Data over the weekend showed that China's central bank added gold to its reserves in May for the seventh straight month.
Spot platinum gained 3.1% to $1,205.01, reaching its highest point since May 2021.
Spot silver was up 1.3% to $36.41 per ounce, while palladium rose nearly 3% to $1,077.59.
Source: Reuters
