Gold prices edged higher in early Monday trading, supported by ongoing uncertainty surrounding the, so far, largely fruitless trade talks between the United States and other countries. With the 1st August deadline approaching, the prospect of a sudden wave of elevated tariffs impacting global trade — and, in turn, global economic prospects — is driving renewed interest in safe-haven assets. This dynamic may intensify as the end of the month nears, if no significant trade agreements are reached. Another factor underpinning gold’s price at the start of the trading week is the weakening of the US dollar. Despite political pressure from the White House and dovish signals from some Federal Reserve officials, most traders expect next week’s FOMC meeting to result in a decision to keep interest rates unchanged. Against this backdrop, there remains scope for further dollar softness — a development typically favourable for the non-yielding precious metal.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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