Gold prices traded within a tight range during Monday's Asian deals as improved sentiment around global trade and a softer U.S. dollar encouraged light buying, though gains remained limited amid looming U.S. economic risks.
By 3:30 pm AEST (5:30 am GMT), spot gold had risen $2.80, or 0.1%, to US$3,340.07 per ounce.
Market attention is now firmly on a wave of key economic releases beginning Tuesday, including the second-quarter U.S. gross domestic product (GDP) report and the Federal Reserve’s upcoming policy decision.
Any indication of tighter monetary policy could weigh further on non-yielding assets like gold.
The U.S. dollar remained under pressure on Monday, helping buoy gold, as the euro strengthened following Sunday’s announcement of a U.S.-EU trade agreement.
President Donald Trump confirmed the framework deal, which imposes a blanket 15% levy on EU imports, half the originally proposed rate, easing fears of a deeper trade conflict between major economic blocs.
Further optimism was fuelled by reports that the U.S. and China may extend their trade truce by 90 days.
Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to meet Monday in Stockholm to finalise an agreement.
While improving trade relations have boosted broader risk appetite, they also reduce demand for traditional safe-haven assets such as gold and the U.S. dollar.
Geopolitical tensions in Asia have also eased. Over the weekend, President Trump reportedly pressured Thailand and Cambodia to enter ceasefire negotiations, warning that U.S. trade deals would be suspended if violence escalated. Talks between the two nations have since commenced, further dampening safe-haven flows.
