Gold remains close to a four-week high, influenced by a declining dollar and ongoing trade concerns. Gold prices surged to a near four-week high, supported by a declining dollar and heightened U.S.-China trade tensions, which have amplified demand for this safe-haven asset. The uncertainty surrounding trade negotiations and geopolitical concerns, particularly the discussions between Russia and Ukraine, has further bolstered gold’s upward momentum. Other precious metals exhibited a varied performance, as silver experienced a decline, whereas platinum and palladium recorded gains.
Gold advanced to reach a near four-week peak on Tuesday, driven by a declining dollar and increasing uncertainty surrounding the U.S.-China trade agreement, which heightened demand for the safe-haven asset. Spot gold rose by 0.1% to $3,381.13 an ounce, as of 0030 GMT, following a peak not seen since May 8 earlier in the session. The metal appreciated approximately 2.7% in the prior session, representing its most robust daily performance in over three weeks. U.S. gold futures increased by 0.3%, reaching $3,406.10. * The U.S. dollar index reached a level not seen in over a month, resulting in lower prices for gold for those using alternative currencies.
The White House announced on Monday that U.S. President Donald Trump and Chinese President Xi Jinping are expected to engage in conversation this week, following Trump’s recent allegations that China has breached an agreement concerning the reduction of tariffs and trade restrictions. The European Commission announced on Monday its intention to present a compelling argument this week for the United States to consider reducing or eliminating tariffs, despite Trump’s declaration to increase import duties on steel and aluminium to 50%.
The Trump administration is urging countries to submit their most competitive offers in trade negotiations by Wednesday, as officials aim to expedite discussions with various partners in light of a self-imposed deadline approaching in just five weeks, as indicated in a draft letter to negotiating partners reviewed by Reuters. Meanwhile, Russia informed Ukraine during peace talks on Monday that it would only consent to conclude the war if Kyiv relinquishes significant new portions of territory and agrees to restrictions on the size of its military, as per a memorandum reported by Russian media.
In other markets, spot silver decreased by 0.4% to $34.67 per ounce, while platinum experienced a rise of 0.4% to $1,067.40, and palladium saw an increase of 0.2% to $990.76.