Gold prices steadied in Asian trade on Monday, holding onto last week’s gains as investors turned cautiously optimistic ahead of high-stakes U.S.-China trade talks scheduled in London later today.
Meanwhile, platinum prices surged over 2%, hitting a four-year high on expectations of tighter global supplies, making it the standout performer among precious metals.
Gold Holds Ground Near Multi-Month Highs
Spot gold was unchanged at $3,310.61/oz
August gold futures slipped 0.5% to $3,330.65/oz
Despite Friday’s stronger-than-expected U.S. nonfarm payrolls data—which briefly boosted the dollar—gold remained supported by economic uncertainty, a softening dollar, and renewed risk-off flows.
Gold prices are now hovering just $200 below record highs, with investor sentiment still tilted toward haven assets amid lingering macro risks.
Dollar Weakness and Trade Talks in Focus
The U.S. Dollar Index pulled back in Monday’s Asian session, offering some relief to dollar-denominated commodities. Traders appear reluctant to increase exposure to U.S. assets ahead of a potential pivot in trade policy between the world’s two largest economies.
U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer are set to meet China’s Vice Premier He Lifeng in London. The talks aim to resolve ongoing disputes around tariffs, tech exports, and critical minerals.
A favorable outcome could reduce geopolitical risk, but gold traders remain cautious, looking for more than just temporary ceasefires.
Platinum Breaks Out on Supply Optimism
Platinum surged over 2%, buoyed by forecasts of tightening supply amid geopolitical instability and mining disruptions. The rally marks a strong technical breakout, with prices now sitting at their highest levels since 2021.
With auto and industrial demand still steady, platinum is benefiting from both supply constraints and a tailwind from broader precious metal strength.
Outlook
While risk appetite has slightly improved, haven demand for gold remains resilient, supported by structural uncertainties and weaker dollar momentum. Any unexpected breakdown in U.S.-China negotiations could trigger another leg up for bullion.
Investors tracking macro sentiment can monitor real-time inflation and trade-related triggers via the Economics Calendar, while real-time Commodities data remains essential for understanding moves in gold, platinum, and beyond.
