Market News

Gold prices edged lower on Monday as a softening in tensions between the United States and China reduced demand for traditional safe-haven assets. A stronger dollar added further headwinds for the precious metal.

Gold futures were down by 0.2% to $3,292.00 per ounce at the time of writing, while the spot price slipped 0.8% to trade at $3,309.68 an ounce.

Investors have historically turned to gold during periods of geopolitical and economic uncertainty, as well as in low interest rate environments. But recent signs of improved dialogue between Washington and Beijing have tempered those concerns.

“Financial markets, and risk assets in particular, are feeling slightly better about the tariff picture compared to earlier this month,” Tim Waterer, chief Market Analyst at KCM Trade, told Reuters.

"Comments last week from the White House have fuelled optimism that a US-China trade deal may eventuate, which has caused safe haven demand for assets such as gold to subside."

The firmer dollar also played a role in weakening bullion prices, as a stronger greenback makes gold more expensive for holders of other currencies.