Gold prices rose in European trade on Monday away from a one-week low, and on track for the first profit in three days, ahead of the US-China London trade talks.
The gains are boosted by the dollar’s decline against a basket of major rivals as traders await more important clues on the odds of a Fed rate cut in the second half of the year.
The Price
Gold prices rose 0.55% today to $3328 an ounce, with a week low at $3293.
On Friday, the precious metal lost 1.25%, the second loss in a row on profit-taking away from a four-week high at $3403.
Gold fell back then after upbeat US labor data, which hurt the odds of a Fed rate cut in October.
The precious metal marked a 0.65% weekly profit last week on haven demand amid US-China trade tensions.
London Trade Talks
Later today in London, The US and China will conduct new trade talks following the crucial Trump-Xi trade talk last week, which helped accelerate the momentum of negotiations between both sides.
The Dollar
The dollar index fell over 0.3% on Monday against a basket of major rivals, providing some support to gold and other greenback-denominated gold futures.
Trump said he’ll soon announce his choice for the next Federal Reserve Chair, who would focus primarily on rate cuts.
US Rates
According to the Fedwatch tool, the odds of a 0.25% Fed June rate cut stood at just 1%, and at 17% for a July rate cut.
According to the London Securities Exchange data, traders now expect 50 basis points of US interest rate cuts overall this year, likely starting in October.
SPDR
Gold holdings at the SPDR Gold Trust fell 1.44 tons on Friday to a total of 934.21 tons, away from May 13 highs.
