New Delhi: Gold prices on Monday slipped, touching their lowest level since May 29 as improving trade relations between the U.S and China reduced for safe-haven assets. With investors turning to riskier options, spot gold dipped 0.3 per cent to 3,264.64 dollars per ounce while U.S. gold futures were down 0.4% at 3,275.30 dollars.
Asian stock markets opened higher on Monday boosted by improving global investor sentiment. The upbeat mood followed comments from U.S. Treasury Secretary Scott Bessent, who said that trade issues with China over rare earth shipments had been resolved. He also hinted that new trade deals with other countries could be wrapped up by Labor Day on September 1. Meanwhile, U.S. 10-year Treasury yields edged up slightly.
However, not all tensions have eased. U.S. President Donald Trump abruptly ended trade talks with Canada last Friday, calling Canadian taxes on American tech companies a “blatant attack.” He also threatened to impose new tariffs on Canadian goods within a week. On a more positive note, the ceasefire between Iran and Israel after a 12-day conflict seems to be holding which has helped lower geopolitical risks and reduced the demand for gold as a safe-haven asset.
Gold is losing some of its shine as stable global conditions and high interest rates make other investments more attractive. Meanwhile, Donald Trump has once again called for the U.S. Federal Reserve to cut interest rates, hinting at possible easing of monetary policy in the future.
