Gold hovers near four-week peak on weaker dollar, trade concerns
Gold prices saw a rise, reaching a near four-week high. This increase is due to a weaker dollar and uncertainty surrounding the United States-China trade deal.
Gold prices climbed to a near four-week high, buoyed by a weaker dollar and escalating U.S.-China trade tensions, increasing demand for the safe-haven asset. Uncertainty surrounding trade negotiations and geopolitical concerns, including discussions between Russia and Ukraine, further supported gold's upward momentum. Other precious metals saw mixed performance, with silver declining while platinum and palladium gained.
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Gold edged up to hit a near four-week high on Tuesday, as a weaker dollar and rising uncertainty over the U.S.-China trade deal boosted demand for the safe-haven asset FUNDAMENTALS Spot gold inched up 0.1% at $3,381.13 an ounce, as of 0038 GMT, after hitting its highest level since May 8 earlier in the session.* The metal gained about 2.7% in the previous session, marking its strongest daily performance in more than three weeks.* U.S. gold futures was up 0.3% to $3,406.10. * The U.S. dollar index touched a more than one-month low, making gold cheaper for buyers holding other currencies.* U.S. President Donald Trump and Chinese President Xi Jinping will likely speak this week, White House said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions.* The European Commission said on Monday it would make a strong case this week for the United States to reduce or eliminate tariffs even after Trump said he would double import duties on steel and aluminium to 50%.* The Trump administration wants countries to provide their best offer on trade negotiations by Wednesday as officials seek to accelerate talks with multiple partners ahead of a self-imposed deadline in just five weeks, according to a draft letter to negotiating partners seen by Reuters.* Meanwhile, Russia told Ukraine at peace talks on Monday that it would only agree to end the war if Kyiv gives up big new chunks of territory and accepts limits on the size of its army, according to a memorandum reported by Russian media.* Elsewhere, spot silver fell 0.4% to $34.67 an ounce, platinum rose 0.4% to $1,067.40 and palladium was up 0.2% to $990.76. DATA/EVENTS (GMT) 0145 China Caixin Mfg PMI Final May 0900 EU HICP Flash YY May 0900 EU HICP-X, F, E, A, T Flash MM, YY May 0900 EU Unemployment Rate April 1400 US Factory Orders MM April.
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