Gold prices experienced a modest rebound on Monday, climbing from a one-month low as the U.S. dollar weakened, making the precious metal more attractive to investors holding other currencies. Spot gold rose by 0.5% to $3,290 per ounce, while U.S. gold futures increased by 0.4% to $3,301.
The decline in the dollar index by 0.3% contributed to gold’s uptick, as a softer dollar typically enhances the appeal of dollar-denominated assets like gold. Additionally, easing tensions between the U.S. and China, highlighted by progress in trade negotiations and agreements on rare earth mineral shipments, improved market sentiment. Canada’s decision to shelve its digital services tax targeting U.S. technology firms further signaled a move towards smoother trade relations.
However, the recent ceasefire between Iran and Israel reduced geopolitical risks, diminishing gold’s allure as a safe-haven asset. Analysts note that while gold found support at the $3,250 level, a breach below this could see prices decline towards $3,200.
Other precious metals also saw gains, with silver rising 0.5% to $36.16 per ounce, platinum advancing 2% to $1,366.63, and palladium increasing 1.6% to $1,151.36.
