Gold Rises as Dollar Dips and Trade Uncertainty Builds

Gold extended its gains at the start of the week as the dollar softened, with spot prices rising 0.6% to $3,368.39 per ounce and U.S. gold futures edging up 0.5% to $3,376. The dollar index slipped 0.1%, making gold more attractive to holders of other currencies. 

Traders are now eyeing the August 1 deadline set by the U.S. for potential new tariffs, a move that could further inflame trade tensions. With no clear breakthrough in U.S.–EU talks, and speculation over President Trump’s possible visit to China or a sideline meeting with Xi Jinping at the APEC summit, markets are on edge.

Meanwhile, anticipation is building ahead of next week’s Federal Reserve policy meeting. Governor Christopher Waller has signaled support for another rate cut, reinforcing expectations that the Fed may continue its dovish stance. 

Gold, typically a beneficiary in low-rate environments, is reacting accordingly. Across the Atlantic, the European Central Bank is widely expected to keep its benchmark interest rate unchanged at 2.0%, following multiple rounds of cuts aimed at stabilizing the bloc’s fragile growth.

What Does This Mean for Me? 

The combination of geopolitical risk, trade uncertainty, and dovish central banks is setting a bullish tone for precious metals. Silver inched up 0.3% to $38.28 per ounce, platinum gained 0.5% to $1,429.08, and palladium jumped 1.6% to $1,259.93, mirroring gold’s trajectory as investors rotate into safe-haven assets amid an increasingly volatile global backdrop.