Gold rises on weaker US dollar
Spot gold was up 0.5% at $3,369.17 per ounce by 1114 GMT. US gold futures rose 0.5% to $3,376.30. 'The modest support...comes from a weaker US dollar. With the tariff August 1 deadline coming closer, the market focus will be if trade deals are announced, or tariffs are implemented,' said UBS commodity analyst Giovanni Staunovo.
The dollar eased 0.3% against a basket of other major currencies, making gold less expensive for their holders.
US Commerce Secretary Howard Lutnick said on Sunday he was confident the United States can secure a trade deal with the European Union, but August 1 is a hard deadline for tariffs to kick in.
Gold, often considered a safe-haven asset during economic uncertainty, tends to do well in a low interest rate environment. The US Federal Reserve's next policy meeting is scheduled for July 29-30, following its decision to hold rates steady last month.
'Elevated inflation expectations and strong economic data are weighing on expectations around the number of Fed rate cuts this year. Despite this, the buy-on-dip strategy remains in place, protecting downside risks for gold prices,' ANZ analysts said in a note.
Last week, Fed Governor Christopher Waller said he still believed that the US central bank should cut rates next week. Data showed that top consumer China's imports of gold fell for a second successive month in June.
China's imports of platinum in June fell 6.1% from the prior month. Spot silver gained 0.8% to $38.47 per ounce, platinum rose 1.6% to $1,444.11 and palladium was 2.1% higher at $1,266.91.
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