Gold prices regained ground on Monday, reversing earlier losses as bargain-hunting drove a modest rally. The market remained focused on ongoing U.S.-China trade discussions and a range of upcoming economic data.
As of 2:06 p.m. ET (1806 GMT), spot gold was up 0.5%, trading at $3,335.30 per ounce, after having dipped as much as 1.8% earlier in the session. U.S. gold futures closed 1.5% higher at $3,347.70 per ounce.
TD Securities commodity strategist Daniel Ghali noted signs of “selling exhaustion,” suggesting that the downside risks for gold were minimal. “Western investors, particularly discretionary traders and macro funds, have been under-positioned in this last leg of gold’s rally,” Ghali explained. “With limited selling activity, gold prices are naturally drifting higher.”
Gold, traditionally seen as a safe haven against political and financial instability, surged to a record high of $3,500.05 per ounce last week amid rising uncertainties.
While U.S. President Donald Trump reported progress in trade talks with China, Beijing has denied any ongoing negotiations. Additionally, Treasury Secretary Scott Bessent refrained from confirming Trump’s claim that tariff discussions with China were underway. Fawad Razaqzada, a market analyst at City Index and FOREX.com, cautioned that, “Until there is concrete evidence of trade agreements and clear market trends, the potential for further gold price gains cannot be ruled out.”
Concerns about a potential global recession remain high, with most economists in a Reuters poll warning of an economic slowdown this year. Market participants are closely monitoring several key reports this week, including the U.S. job openings data on Tuesday, the Personal Consumption Expenditures report on Wednesday, and the nonfarm payrolls report on Friday, all of which will offer insights into the impact of recent tariffs on the U.S. economy.
In other precious metals, spot silver dipped 0.1% to $33.03 per ounce, while platinum rose 1.5% to $986.05, and palladium fell 0.4% to $947.27 per ounce.
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