Spot Gold rebounded from a fresh 6-week low of $3,244.41 per troy ounce on Monday on the back of a weaker US Dollar. Earlier, Gold came under pressure due to easing US-China trade tensions as well as reduced geopolitical risks.
According to Treasury Secretary Scott Bessent, the US and China have found a resolution to issues regarding shipments of rare earth minerals and magnets to the US.
Bessent also said the Trump administration’s various trade deals with other nations could be struck by the September 1st Labor Day holiday.
Additionally, the ceasefire between Israel and Iran appeared to be holding, while also paring demand for safe-haven assets.
“There is less of a ‘doom and gloom’ outlook surrounding both tariff talks and events in the Middle East, which is relegating gold to play second fiddle to risk assets,” KCM Trade Chief Market Analyst Tim Waterer was quoted as saying by Reuters.
The US Dollar Index was holding near a three-year low of 96.974.
A softer dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
“The dollar remains pressured, which is limiting the extent of the slide for gold. However, the $3,250 level shapes as a key support level for gold. Any breach of this level could see losses accelerate towards the $3,200 level,” KCM Trade’s Waterer said.
Spot Gold was last up 0.64% on the day to trade at $3,295.19 per troy ounce.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
