Gold Ends Losses and Records Slight Increase Under Pressure from Dollar Decline
Gold regained ground during Monday's trading on June 30, recording a limited increase, supported by the decline of the US dollar index to its lowest level in over a month, at a time when demand for safe havens decreased with the improvement in trade relations between Washington and Beijing and investors' preference for high-yield assets.
Spot gold contracts rose by 0.2% to settle at $3280.66 per ounce, after touching earlier its lowest levels since May 29. Also, gold futures in the US market rose by 0.1% to reach $3291.90 per ounce.
Market experts believe that this slight improvement comes amid a 0.2% decline in the strength of the US dollar, increasing the attractiveness of the yellow metal to investors outside the United States. Positive statements by US Treasury Secretary Steven Mnuchin last Friday also supported market sentiment, confirming solutions to trade disputes with China regarding rare metal exports, with expectations of new trade agreements with other countries by next September.
Tim Waterer, Senior Market Analyst at K.C.M., commented on these developments, saying: "The reduced pessimism towards tariff talks, as well as the easing tensions in the Middle East, make gold less attractive compared to high-risk assets."
In a related context, Asian markets witnessed a positive performance, while futures rose on Wall Street, as investors shifted towards high-risk assets. However, trade tensions resurfaced after US President Donald Trump decided to suspend trade negotiations with Canada in protest against its imposition of a new tax on US technology companies, threatening to impose new tariffs on Canadian goods next week.
On the geopolitical front, the continuation of the ceasefire between Iran and Israel helped calm the markets, reducing demand for safe assets. As for other precious metals, silver fell by 0.1% to $36.02 per ounce, while platinum jumped by 1% to reach $1353.13, and palladium rose by 0.2% to $1135.48 per ounce.
