Gold gains on weaker dollar as US-China talks in focus
- Last updated: June 9, 2025 | 16:22
Gold prices rose on Monday, supported by a weaker US dollar ahead of U.S.-China trade talks aimed at resolving tensions, while platinum extended gains for a sixth straight session to scale a four-year peak.
Spot gold rose 0.3 per cent to $3,318.76 an ounce, as of 1007 GMT, after dropping earlier in the session to $3,293.29, its lowest level since June 2.
US gold futures fell 0.2 per cent to $3,339.70.
The dollar fell 0.3 per cent against a basket of peers, making bullion cheaper for holders of other currencies.
Investors recognise that drivers of gold, including trade and geopolitical tensions, debt concerns and weak economic growth, remain in place and should continue to support the metal in the months ahead, said Giovanni Staunovo, an analyst at UBS.
US and Chinese officials will sit down in London on Monday for talks aimed at defusing the trade dispute between the two superpowers.
Stronger-than-expected US non-farm payrolls data have led investors to scale back expectations for Federal Reserve rate cuts this year from two to one in October.
Market attention will turn to US CPI data, due on Wednesday, for further clues on the Fed’s monetary policy path. Gold, considered a safe-haven asset during political and economic uncertainty, tends to thrive in a low-rate environment. Meanwhile, China’s central bank added gold to its reserves in May for the seventh straight month, official data showed.
Reuters