Gold flat as markets await Fed decision and trade talks

SINGAPORE: Gold prices held largely unchanged on Monday as traders remained cautious ahead of next week’s US Federal Reserve policy meeting and closely watched developments in global trade talks.

As of 0250 GMT, spot gold was trading at $3,352.19 per ounce, while US gold futures hovered around $3,358.70.

Tim Waterer, Chief Market Analyst at KCM Trade, said the US dollar had a quiet start to the week, giving gold some room to climb as investors brace for key tariff deadlines.

“The longer we go without progress on trade deals, especially as the August 1 deadline nears, the more likely gold could test the $3,400 mark and potentially push beyond that,” he noted.

Investor attention is focused on trade negotiations as the deadline set by US President Donald Trump approaches. US Commerce Secretary Howard Lutnick has voiced optimism about a possible agreement with the European Union.

Reports suggest President Trump may visit China before the Asia-Pacific Economic Cooperation (APEC) summit, scheduled between October 30 and November 1. He may also meet Chinese President Xi Jinping on the sidelines of the event, which is being held in South Korea.

Meanwhile, the European Central Bank is expected to keep interest rates unchanged at 2.0 per cent in its upcoming meeting, following several earlier cuts.

In the US, Federal Reserve Governor Christopher Waller said last week that he supports a rate cut at the central bank’s next policy meeting. Lower interest rates typically support gold, which does not yield interest, by making it more attractive compared to other assets.

Gold is often viewed as a safe-haven investment during times of economic or geopolitical uncertainty.

In Japan, Prime Minister Shigeru Ishiba suffered a political setback as his ruling coalition lost control of the upper house in Sunday’s election. The development comes as global markets prepare for potential tariff changes in early August.

Other precious metals also saw modest gains. Spot silver rose 0.1 per cent to $38.22 per ounce. Platinum climbed 0.3 per cent to $1,425.11, while palladium inched up 0.2 per cent to $1,243.47.

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