- The dollar index is close to its best level since March 7, according to key figures.
- A U.S. team will go after a ceasefire in the Black Sea.
- Israel strikes a hospital in Gaza, killing five people, including a Hamas commander.
- Trump alluded to potential leeway on tariffs on Friday.
After a recent rise that drove prices to all-time highs due to geopolitical fears and expectations of U.S. rate reduction, gold was little changed on Monday as traders sought new catalysts.
At 0715 GMT, spot gold (GOLD) was unchanged at $3,025.38 per ounce. U.S. gold futures GOLD increased to $3,029.70, a 0.3% increase.
On Thursday, bullion hit a record high of $3,057.21.
“Gold is still well-positioned for further upside if markets remain edgy about the possible negative growth effects of tariffs but this could be partially offset if a Russia-Ukraine ceasefire deal comes closer to fruition,” Tim Waterer, chief market analyst at KCM Trade, said.
During negotiations with Russia on Monday, a U.S. team will look for a Black Sea truce and wider peace in Ukraine. Meanwhile, five individuals, including a Hamas senior official, were killed in an Israeli attack on a Gaza hospital on Sunday.
The reciprocal tariffs imposed by U.S. President Donald Trump are scheduled to go into effect on April 2 and are anticipated to impede economic growth and increase inflation. Trump did, however, imply Friday that there would be some leeway on tariffs.
“President Trump has left some wiggle room for the reciprocal tariffs to potentially be less severe than feared, which has lowered market anxiety to a degree but … it has also sapped the gold price of a bit of momentum,” Waterer stated.
A hedge against inflation and economic and geopolitical unpredictabilities is zero-yield bullion.
Jewellers across the Middle East and Asia are struggling with displays losing their lustre as consumers rush to cash in their old coins and jewellery as gold prices approach all-time highs.
By the end of 2025, officials anticipate two quarter percentage point rate decreases, while the U.S. Federal Reserve kept its benchmark rate unchanged last week in the 4.25%–4.50% range.
Platinum PL1! increased 0.3% to $977.7, palladium XPDUSD1! increased 0.4% to $962.00, and spot silver XAGUSD1! firmed 0.4% to $33.17 an ounce.
