Gold prices firmed on Monday, supported by a softer dollar, as investors awaited further details on the US-China trade relations, along with the Federal Reserve’s policy meeting due later this week.
Spot gold gained 0.5 percent to $3,256.85 an ounce. US gold futures rose 0.7 percent to $3,265.10.
The dollar was down 0.3 percent against its rivals, making gold more attractive for other currency holders.
“The US dollar is looking subdued ahead of the Fed meeting this week which is enabling gold to take a mild run higher,” KCM Trade’s Chief Market Analyst Tim Waterer said.
“We may see gold continue to operate in the $3,200-$3,350 range ahead of the Fed meeting. However, any new headlines on the trade deal could cause volatility to tick up once again.”
The market’s focus will be on the US central bank policy decision and speeches by several Fed officials due this week, for insights into future monetary policy trajectory.
Traders are now expecting 80 basis points of rate cuts this year starting in July, following the US Labor Department’s report on Friday showing larger-than-expected job additions in April.
Non-yielding gold acts as a hedge against global uncertainty and inflation and tends to thrive in a low-interest-rate environment.
US President Donald Trump said he will not remove Jerome Powell as Fed Board Chairman before his term ends in May 2026, while reiterating his call for the Fed to cut interest rates.
