Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold prices gained in Asian trading on Monday, as heightened tensions between the U.S. and China and uncertainty surrounding President Donald Trump’s tariff agenda fueled demand for safe-haven assets. Broader metal markets also found support from a softer dollar, after a Federal Reserve official hinted at the possibility of interest rate cuts later this year.
Spot gold climbed 0.8% to $3,315.68 an ounce, while August gold futures rose 0.7% to $3,338.52 an ounce by 00:53 ET (04:53 GMT).
Trade Tensions Drive Haven Demand
Gold’s rally was fueled by escalating U.S.-China trade frictions. Over the weekend, Trump accused China of violating the recent Geneva trade agreement, though his administration did not specify the alleged violations. China pushed back strongly, rejecting the accusations and warning that it would act to safeguard its interests.
The breakdown in talks has tempered hopes for a lasting trade resolution, and the risk of renewed tariffs looms. Trump’s threat to double tariffs on steel and aluminum to 50% from 25% further rattled sentiment, raising fears of broader economic disruption.
Markets remain on edge as trade tensions simmer, with investors flocking to gold and other havens as a hedge against potential fallout.
Dollar Softens as Fed’s Waller Flags Rate Cuts
A softer dollar also lent support to gold and industrial metals. The greenback eased 0.1% in Asian trading after Federal Reserve Governor Christopher Waller reiterated his support for potential rate cuts later in the year. Waller noted that while Trump’s tariffs had limited immediate impact, the economic outlook remained fragile, citing a recent sell-off in Treasuries.
His comments reinforced market expectations that the Fed could cut rates in response to a mix of trade policy uncertainty, cooling inflation, and a resilient labor market.
Metal Markets Mixed
Silver futures rose 0.6% to $33.220 an ounce, tracking gold’s gains. However, platinum futures slipped 0.5% to $1,050.10 an ounce, with profit-taking seen in the metal after recent gains.
Copper prices edged higher, with benchmark futures on the London Metal Exchange up 0.7% at $9,580.85 a ton. The industrial metal shrugged off weaker Chinese PMI data for May, which pointed to persistent economic challenges in the world’s largest copper consumer.
Overall, the day’s price action reflected a cautious tone in global markets, as investors weighed trade risks against the prospects of looser monetary policy.
