English
Gold Surges as Dollar Weakens and Markets Brace for Key Developments
Gold prices jumped over 1% on Monday, driven by a sharp decline in the US dollar, boosting the metal’s appeal as a safe-haven asset amid persistent economic and trade uncertainties.
Global investors are closely watching trade negotiations ahead of the August 1 deadline, which the US has set as a potential cutoff date for imposing new tariffs, adding further tension and uncertainty to global markets.
Gold Records Strong Gains While Dollar Slips
Spot gold rose 1.13% to $3,388 per ounce, while US gold futures climbed 1.2% to $3,398, as the US dollar index fell by 0.3% against a basket of major currencies.
This weakness in the dollar has made gold more attractive to overseas buyers, especially in an environment marked by expectations of lower interest rates, which tend to increase demand for non-yielding assets like gold.
Dollar Weakness Drives Gold
According to market analysts, the current momentum in gold prices is largely supported by the dollar’s decline. With the August 1 deadline approaching, all eyes are on whether new trade deals will be announced or if tariffs will be enforced as planned.
Trade Uncertainty Remains High
Officials have signaled optimism about reaching trade agreements, but the August 1 deadline remains a strict line for implementing new tariffs, intensifying uncertainty in the markets.
Gold Awaits Upcoming Policy Meeting
Investors are also focused on the upcoming monetary policy meeting on July 29–30, closely monitoring the central bank’s stance on interest rates.
Research notes indicate that strong economic data and rising inflation expectations are pressuring forecasts for interest rate cuts this year. However, buying on dips continues to be a key strategy, helping limit downside risks for gold.
Other commentary suggests that interest rate cuts are still likely in the upcoming meeting, which could further support gold prices.
Mixed Performance in Precious Metals
Other precious metals posted gains as well:
Silver rose 0.8% to $38.47 per ounce.
Platinum climbed 1.6% to $1,444.11.
Palladium increased 2.1% to $1,266.91.
