Gold prices edged higher in Asian trading on Monday, but remained under pressure after two consecutive weekly losses as uncertainty over future U.S. interest rate cuts and easing trade tensions reduced demand for the safe-haven metal.
Spot gold was last up 0.4% at $4,017.13 an ounce by 01:19 ET (06:19 GMT), while U.S. Gold Futures rose 0.8% to $4,027.55.
Gold prices fell more than 2% last week, marking their second straight weekly loss. Still, the metal posted nearly 4% monthly gains for October.
Gold pressured by Fed rate uncertainty, easing trade woes The metal’s weakness came despite the Federal Reserve’s decision to cut rates by 25 basis points last week -- a move that typically supports non-yielding assets like gold.
Fed Chair Jerome Powell’s comments that further rate cuts were “not a foregone conclusion” tempered investor optimism.
His cautious tone, echoed by other Fed officials, has prompted markets to dial back expectations for another reduction in December, pushing the dollar higher and pressuring bullion prices.
The US Dollar Index hovered near three-month highs on Monday, making gold more expensive for overseas buyers.
The outlook for gold was further dampened by easing geopolitical tensions. A closely watched meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Busan last week concluded with both leaders pledging to reduce trade barriers.
The discussions reportedly included a framework for U.S. tariff reductions and Chinese commitments to increase imports of American goods.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. The detente, though short of a comprehensive trade deal, helped soothe market nerves after escalating friction between the world’s two largest economies. The easing of tensions curbed safe-haven demand, further weighing on gold prices.
Precious metals rise; copper muted after weak China PMI Other precious metals saw much sharper gains than gold, while industrial metals were subdued on weak Chinese factory activity data.
Silver Futures climbed 1.1% to $48.705 per ounce, while Platinum Futures jumped 1.8% to $1,603.60/oz.
Benchmark Copper Futures on the London Metal Exchange were muted at $10,903.20 a ton, while U.S. Copper Futures edged down 0.1% to $5.11 a pound.
A private survey on Monday showed that China’s manufacturing sector grew less than expected in October as the sector grappled with cooling prices and a deteriorating economic outlook.
