[BENGALURU] Gold prices fell to their lowest in more than a month on Monday (Jun 30) as easing trade tensions between the US and China dampened safe-haven demand and prompted investors to pivot towards riskier assets.
Spot gold was down 0.3 per cent at US$3,264.64 per ounce, as at 0055 GMT, after hitting its lowest level since May 29.
US gold futures fell 0.4 per cent to US$3,275.30.
Asian shares firmed on Monday, while the benchmark 10-year Treasury yields edged higher.
The United States and China have resolved issues surrounding shipments of rare earth minerals and magnets to the US, Treasury Secretary Scott Bessent said on Friday, adding the Trump administration’s various trade deals with other countries could be done by the Sep 1 Labour Day holiday.
Meanwhile, US President Donald Trump abruptly cut off trade talks with Canada on Friday over its tax targeting US technology firms, saying that it was a “blatant attack” and that he would set a new tariff rate on Canadian goods within the next week.
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The ceasefire between Iran and Israel after a 12-day conflict also appeared to be holding, further reducing safe-haven demand.
Stable geopolitical and economic conditions often reduce demand for gold as a safe-haven asset, while non-yielding bullion’s appeal further wanes in a high-interest-rate environment.
Trump said on Friday he would not appoint anyone to head the US Federal Reserve who would not lower interest rates.
Elsewhere, Senate Republicans pushed forward President Trump’s sweeping tax cut and spending bill on Sunday in a marathon weekend session, even as a nonpartisan forecaster said it would add an estimated US$3.3 trillion to the nation’s debt over a decade.
Spot silver was down 0.4 per cent at US$35.84 per ounce, platinum firmed 0.4 per cent to US$1,344.63, while palladium fell 0.6 per cent to US$1,127.23. REUTERS
