Gold prices edged higher on Monday, supported by a softer U.S. dollar and renewed focus on U.S.-China trade talks, as investors gravitate toward safe-haven assets amid global uncertainty.
As of 0806 GMT, spot gold rose 0.4% to $3,323.71 an ounce, recovering from earlier lows of $3,293.29—the lowest since June 2. Analysts point to persistent concerns around trade, geopolitics, and weak global growth as ongoing drivers of gold demand.
“Investors recognise that key drivers of gold like trade and geopolitical tensions, debt concerns and weak economic growth, remain in place,” said Giovanni Staunovo, analyst at UBS.
Tensions are high ahead of Monday’s U.S.-China trade talks in London, as both nations attempt to ease a widening rift marked by tariffs and export controls that threaten global supply chains.
Gold’s climb is also fueled by a reassessment of the Federal Reserve’s interest rate path, following stronger-than-expected U.S. jobs data. Markets now anticipate just one rate cut this year, likely in October. Traders are watching closely for U.S. CPI data due Wednesday, which could further shape expectations.
Adding to the bullish momentum, China’s central bank boosted its gold reserves for the seventh consecutive month, reflecting ongoing global demand from institutional buyers.
Meanwhile, platinum extended its rally for the sixth straight session, surging 3% to $1,210.80—its highest level since May 2021.
“The rally is supported by a combination of tight supply expectations, improving industrial sentiment, and technical follow-through,” said Alexander Zumpfe of Heraeus Metals Germany.
Other precious metals followed suit:
- Spot silver rose 1% to $36.30 per ounce
- Palladium jumped 2.3% to $1,070.97
With macroeconomic uncertainties and central banks reinforcing their gold reserves, precious metals continue to shine as global investors seek safety, stability, and strategic value.
