Gold prices edged higher early Monday, rebounding from a one-month low as the U.S. dollar slipped near a three-year low, offering buyers an opportunity to enter the market. Spot gold rose 0.4% to $3,288.30 per ounce, while August gold futures advanced by the same margin to $3,300.00 as of 06:00 ET (10:00 GMT).
The yellow metal had dropped nearly 3% last week, marking its steepest weekly decline since May, as optimism around Middle East peace efforts and easing geopolitical risk reduced the urgency for safe-haven assets.
A ceasefire between Israel and Iran, brokered by U.S. President Donald Trump, was a key driver in reducing geopolitical tensions, while additional pressure came from a stronger risk appetite amid improving global trade sentiment.
Trade Deals Limit Safe-Haven Demand
Recent trade developments have offered support to global risk markets, limiting gold’s traditional safe-haven appeal. A U.S.-China trade deal signed in Geneva last week resolved disputes over rare-earth exports and reduced tensions on key industrial goods, while a U.S.-U.K. agreement went into effect Monday, slashing tariffs on cars and aircraft parts.
Key upcoming deadlines include:
- July 9: Possible reinstatement of global steel and aluminum tariffs.
- July 21: Target date for a potential U.S.-Canada trade agreement after Canada rescinded its digital services tax hours before implementation.
These trade resolutions have calmed markets, keeping gold’s upside limited despite support from a weaker dollar, which typically makes bullion cheaper for foreign buyers.
Meanwhile, the market remains cautious over Federal Reserve policy direction as inflation exceeds long-term targets, reducing expectations for aggressive rate cuts. Analysts at ING noted that Fed Chair Jerome Powell may adopt a patient stance, limiting gold’s bullish momentum in the near term.
Platinum Surges, Copper Steadies
Precious and industrial metals presented a mixed picture:
- Platinum futures rose 1.9% to $1,377.00/oz, on track for a 30% monthly gain driven by supply constraints and strong demand.
- Silver futures slipped 0.2% to $35.988/oz.
- Copper futures on LME dipped 0.3% to $9,850.10/ton, while U.S. copper futures gained 0.5% to $5.0938/lb.
Copper’s performance remains closely tied to China’s manufacturing sector, which showed contraction in June, highlighting weak external demand amid U.S. tariffs. ING analysts noted that potential U.S. tariffs on copper could temporarily slow demand, while global inventory movements will remain critical in determining price action.
As gold steadies near $3,300, traders will watch the dollar, trade developments, and Fed signals for the next catalysts in the precious metals market.