Gold prices remained largely unchanged on Monday as investors awaited key developments in U.S. trade talks and looked ahead to next week’s U.S. Federal Reserve policy meeting, which could signal further rate cuts.
As of 0250 GMT, spot gold was steady at $3,352.19 per ounce, while U.S. gold futures held at $3,358.70.
“The dollar has made a subdued start to the week, which has left the door open for gold to post gains early doors with tariff deadlines looming large,” said Tim Waterer, Chief Market Analyst at KCM Trade. He noted that if no trade deal materializes before the August 1 deadline, gold could make another push toward the $3,400 level.
Market sentiment is currently focused on U.S. trade negotiations. Commerce Secretary Howard Lutnick has expressed optimism about reaching a deal with the European Union, while speculation continues over a potential meeting between President Donald Trump and Chinese President Xi Jinping, possibly before or during the APEC summit from October 30 to November 1.
Adding to the uncertainty, the European Central Bank is expected to keep interest rates steady at 2.0% during its meeting later this week, following a series of cuts. Meanwhile, Federal Reserve Governor Christopher Waller recently stated he still supports a rate cut at the Fed’s upcoming meeting — a move that could boost gold, which typically benefits from a low-interest-rate environment.
Political uncertainty in Japan also weighed on global sentiment, as the ruling coalition lost control of the upper house in Sunday’s elections, weakening Prime Minister Shigeru Ishiba’s position just days ahead of the U.S. tariff deadline.
In other precious metals:
- Silver edged up 0.1% to $38.22 per ounce
- Platinum rose 0.3% to $1,425.11
- Palladium gained 0.2% to $1,243.47
Gold’s near-term trajectory will likely hinge on the outcome of global trade talks and central bank policy moves in the coming days.
