Gold prices have declined, hitting a level not seen in over a month, as easing U.S.-China trade tensions have reduced safe-haven demand and prompted investors to pivot towards riskier assets. In the context of market dynamics, President Trump’s trade actions with Canada and his remarks regarding Federal Reserve interest rates have significantly shaped investor sentiment. Spot gold experienced a decline of 0.3%, trading at $3,264.64 per ounce as of 0055 GMT, following a drop to its lowest level since May 29. U.S. gold futures experienced a decline of 0.4%, settling at $3,275.30.
Asian shares strengthened on Monday, as the benchmark 10-year Treasury yields saw a slight increase. On Friday, Treasury Secretary Scott Bessent announced that the United States and China have addressed concerns related to the shipment of rare earth minerals and magnets to the U.S. He further indicated that the Trump administration’s numerous trade agreements with other nations may be finalized by the Labor Day holiday on September 1.
In a surprising move, U.S. President Donald Trump terminated trade negotiations with Canada on Friday, citing the country’s tax aimed at U.S. technology companies as a “blatant attack.” He indicated that a new tariff rate on Canadian goods would be established within the coming week. The ceasefire between Iran and Israel, following a 12-day conflict, seems to be maintaining its stability, which has contributed to a decline in safe-haven demand. Stable geopolitical and economic conditions frequently diminish the demand for gold as a safe-haven asset, while the allure of non-yielding bullion diminishes further in a high-interest-rate environment. On Friday, Trump stated that he would refrain from appointing anyone to lead the U.S. Federal Reserve unless they were committed to reducing interest rates. In other developments, Senate Republicans advanced President Trump’s extensive tax reduction and expenditure legislation on Sunday during an extended weekend session, despite a nonpartisan analyst’s projection that it would increase the national debt by approximately $3.3 trillion over the next ten years.
Spot silver decreased by 0.4% to $35.84 per ounce, platinum increased by 0.4% to $1,344.63, whereas palladium declined by 0.6% to $1,127.23.