Gold Edges Lower as Dollar Firms, Traders Await Fresh Catalysts

A gold seller analyzes gold coins in the gold shop 'Cap Or Numismatique' in Nice, France, 19 March 2025. EPA/SEBASTIEN NOGIER
A gold seller analyzes gold coins in the gold shop 'Cap Or Numismatique' in Nice, France, 19 March 2025. EPA/SEBASTIEN NOGIER
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Gold Edges Lower as Dollar Firms, Traders Await Fresh Catalysts

A gold seller analyzes gold coins in the gold shop 'Cap Or Numismatique' in Nice, France, 19 March 2025. EPA/SEBASTIEN NOGIER
A gold seller analyzes gold coins in the gold shop 'Cap Or Numismatique' in Nice, France, 19 March 2025. EPA/SEBASTIEN NOGIER

Gold dipped on Monday as the dollar strengthened, while traders awaited fresh catalysts after a recent rally pushed prices to record highs, fueled by geopolitical concerns and hopes of US rate cuts.

Spot gold was down 0.1% at $3,022.21 an ounce, as of 0526 GMT. US gold futures rose 0.2% to $3,026.30.

Gold reached a record high of $3,057.21/oz on Thursday.

The dollar index was hovering near its highest level since March 7, making greenback-priced gold less affordable for overseas buyers.

"Gold is still well-positioned for further upside if markets remain edgy about the possible negative growth effects of tariffs, but this could be partially offset if a Russia-Ukraine ceasefire deal comes closer to fruition," KCM Trade chief market analyst Tim Waterer said.

A US delegation will seek a ceasefire in the Black Sea and broader peace in Ukraine during talks with Russia on Monday. Meanwhile, an Israeli airstrike on a hospital in Gaza on Sunday killed five people, including a Hamas political leader.

US President Donald Trump announced reciprocal tariffs set to take effect on April 2, likely to drive inflation and hinder economic growth.

However, Trump hinted on Friday there would be some flexibility regarding tariffs.

"President Trump has left some wiggle room for the reciprocal tariffs to potentially be less severe than feared, which has lowered market anxiety to a degree but ... it has also sapped the gold price of a bit of momentum," Waterer said.

Zero-yield bullion is seen as a hedge against geopolitical turmoil, economic uncertainties, and inflation.

The US Federal Reserve held its benchmark rate steady in the 4.25%-4.50% range last week. Policymakers see two quarter-percentage-point cuts by 2025-end.

Spot silver firmed 0.4% to $33.16 an ounce, platinum was steady at $974.98, and palladium added 0.3% to $960.62.



Gold Falls as Positive US-China Talks Hamper Safe-haven Appeal

Gold jewelry are displayed for sale at V&P Jewelry in the St. Vincent Jewelry Center in the Jewelry District of Los Angeles in Los Angeles, Wednesday, April 30, 2025. (AP Photo/Jae C. Hong)
Gold jewelry are displayed for sale at V&P Jewelry in the St. Vincent Jewelry Center in the Jewelry District of Los Angeles in Los Angeles, Wednesday, April 30, 2025. (AP Photo/Jae C. Hong)
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Gold Falls as Positive US-China Talks Hamper Safe-haven Appeal

Gold jewelry are displayed for sale at V&P Jewelry in the St. Vincent Jewelry Center in the Jewelry District of Los Angeles in Los Angeles, Wednesday, April 30, 2025. (AP Photo/Jae C. Hong)
Gold jewelry are displayed for sale at V&P Jewelry in the St. Vincent Jewelry Center in the Jewelry District of Los Angeles in Los Angeles, Wednesday, April 30, 2025. (AP Photo/Jae C. Hong)

Gold slipped on Monday as positive US-China trade talks alleviated market fears, leading investors to shift from safe-haven assets towards riskier investments.

Spot gold fell 1.4% to $3,277.34 an ounce, as of 0432 GMT. US gold futures lost 1.9% to $3,281.70, Reuters reported.

"The dollar index has advanced as the Trump administration touted progress in trade negotiations, with China following negotiations over the weekend in Switzerland which weighed on gold prices," said Jigar Trivedi, senior commodity analyst at Reliance Securities.

The US and China ended high-stakes trade talks on a positive note on Sunday, with US officials touting a "deal" to reduce the US trade deficit, while Chinese officials said they had reached "important consensus".

Chinese Vice Premier He Lifeng said a joint statement would be released in Geneva on Monday.

The US and China imposed tit-for-tat tariffs on each other last month, triggering a trade war that fueled fears of global recession.

The US will be left with higher tariffs once the dust settles from President Donald Trump's trade negotiations, a majority of the current and former Trump advisers Reuters spoke to said.

Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low-interest rate environment.

On Friday, Cleveland Fed President Beth Hammack said the Fed needs more time to see how the economy responds to Trump's tariffs and other policies before figuring out the right response.

Traders are also eyeing release of US Consumer Price Index on Tuesday for fresh signals on the Fed's monetary policy trajectory.

"In the near term, gold possibly continue to decline as the dollar could appreciate and amid reducing geopolitical risk the haven demand too may drop hence, the yellow metal may decline to $3,200/oz in the near term," Trivedi added.

Spot silver gained 0.4% to $32.84 an ounce, platinum rose 0.7% to $1,001.90 and palladium firmed 0.6% to $981.20.