Gold prices continue their downward trend, reaching approximately $3,265 during the early Asian session on Monday. The precious metal has fallen to near a one-month low following a trade agreement between the United States (U.S.) and China that has boosted risk appetite. Investors are now looking forward to the Fed’s comments later on Monday for new direction.
In Dubai, gold rates have varied, with 24-carat gold priced at AED394.50 and 22-carat gold at AED365.50. Additionally, 21-carat gold is recorded at AED350.25, while 18-carat gold stands at AED300.25.
Globally, spot gold increased by 0.14 percent, reaching $3,279.97. Meanwhile, U.S. gold futures climbed by 0.05 percent to $3,289.55.
The trade agreement established last week between the U.S. and China regarding the expedited shipment of rare earth materials to the U.S. has been positively received by the markets. Consequently, this development has lessened the appeal of bullion as a safe-haven asset. Moreover, the ceasefire agreement between Iran and Israel last week has further contributed to the downward pressure on the yellow metal.
Read more: Dubai gold prices rise to AED402.75 as global rates gain 0.17 percent on weaker dollar
Rate cut optimism and bullion support
Conversely, any resurgence in geopolitical tensions or trade uncertainties instigated by U.S. President Donald Trump could stimulate central bank purchases and increase demand for gold, which is traditionally viewed as a safe-haven asset. Furthermore, heightened optimism regarding a potential rate cut by the Federal Reserve (Fed) might also support the non-interest-bearing bullion. Traders are increasing their bets that the U.S. central bank will implement rate cuts more frequently this year, and potentially sooner than previously anticipated, as recent U.S. data revealed an unexpected decline in consumer spending.
Gold prices remained steady on Thursday as investors awaited U.S. inflation data to assess the interest rate outlook, while also monitoring the Middle East as geopolitical tensions eased. In contrast, both palladium and platinum experienced significant increases.
Spot gold was unchanged at $3,333 per ounce. U.S. gold futures rose by 0.2 percent to settle at $3,348. Spot silver saw an increase of nearly 1 percent, reaching $36.63, its highest level since June 18. Palladium surged over 8 percent to $1,136.68 after hitting its highest point since October 31, 2024. Platinum climbed by 5.1 percent to $1,423.26, nearing its peak from September 2014.
In May, the World Platinum Investment Council (WPIC) reported a surge in demand for platinum jewelry in China, exacerbating the structural market deficit. Platinum may reach $1,500 per ounce in the upcoming days and could fall to $1,200 within two weeks, while palladium might drop to approximately $1,050 by mid-July, according to analysts.
