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Gold prices rebounded from a one-month low in Asian trade on Monday, buoyed by a weaker dollar and the easing of geopolitical tensions in the Middle East. While safe-haven demand for gold remained subdued due to optimism surrounding potential U.S. trade deals, the precious metal found some support.
Spot Gold rose 0.5% to $3,290.25 an ounce, while Gold Futures for August gained 0.4% to $3,300.0/oz by 02:00 ET (06:00 GMT).
The rebound came after gold experienced its steepest weekly drop since early May, falling nearly 3% last week. Despite this, gold was on track to end the month flat, as early gains driven by geopolitical tensions were wiped out by losses following the Israel-Iran ceasefire.
Weaker Dollar Provides Support to Gold
The recent geopolitical calm, marked by the ceasefire between Israel and Iran brokered by U.S. President Donald Trump, eased concerns about supply disruptions in the Middle East. As a result, gold’s safe-haven appeal diminished, and the focus shifted toward trade developments.
Gold prices were further supported by a weakening dollar, as investors increased their expectations of at least one rate cut by the Federal Reserve by September. The U.S. Dollar Index fell 0.2% during Asian trading hours, remaining near a three-year low, which contributed to the rise in gold prices.
On the trade front, positive news came from the resolution of some U.S.-China trade tensions. A deal signed last week in Geneva resolved issues related to rare-earth shipments, reducing some of the key trade friction between the two countries. Additionally, a U.S.-U.K. trade agreement, which took effect on Monday, slashed car tariffs to 10% and fully eliminated aircraft parts duties.
However, concerns remained as the July 9 deadline approaches for the potential reinstatement of duties on other trading partners, as well as for global steel and aluminum tariffs, keeping some uncertainty in the market.
Platinum Soars, Silver and Copper Mostly Flat
Platinum saw significant gains, jumping 1.9% to $1,377.00 per ounce. The precious metal was on track for a more than 30% increase in June, following a pullback from a decade-high earlier in the month. The surge in platinum prices was attributed to a combination of strong demand and tightening supply.
Silver prices remained mostly flat, with Silver Futures trading at $36.045 per ounce. While the metal saw limited movement, it remained supported by the weaker dollar.
Meanwhile, copper prices showed little change, with benchmark Copper Futures on the London Metal Exchange holding steady at $9,888.95 a ton. U.S. Copper Futures rose 0.7% to $5.132 a pound. However, gains in copper were capped as data indicated that China’s manufacturing sector contracted in June, signaling ongoing weakness in external demand, exacerbated by elevated U.S. trade tariffs on the world’s largest copper importer.
Outlook for Metals
The outlook for gold remains tied to the strength of the U.S. dollar and any developments in global trade. If further easing of trade tensions continues, gold may find support in the long run, but its appeal as a safe-haven asset could continue to diminish as market optimism grows.
Platinum’s impressive monthly jump highlights strong demand and potential supply constraints, making it one of the standout metals this month. Meanwhile, silver and copper’s prices may remain subdued, particularly with the ongoing challenges in global manufacturing and trade.
The metals markets will continue to track developments in the broader economy, especially as concerns about inflation, trade tensions, and geopolitical risks continue to evolve. As markets await further data and policy decisions, gold and other precious metals will likely remain sensitive to shifts in market sentiment and economic outlook.
