Gold price climbs to $3,400 with tariffs, rate cut in focus
Gold climbed on Monday to its highest in over a month, as both the US dollar and bond yields weakened amid uncertainty over trade talks ahead of the August 1 deadline.
Spot gold rose 1.4% to $3,397.51 per ounce by noon ET, after briefly touching the $3,400 level for the first time since mid-June.
US gold futures for August delivery traded 1.6% higher at $3,411.1 per ounce in New York.
Meanwhile, the US dollar index fell 0.7%, making gold more affordable for buyers using other currencies,. Benchmark 10-year Treasury yields also hit a more than one-week low, further boosting bullion’s appeal.
“With the August 1st deadline looming, it brings a level of uncertainty to the market and that certainly is supportive,” David Meger, director of metals trading at High Ridge Futures, said in a Reuters note.
The European Union is exploring a broader set of possible counter-measures against the US as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats.
On the interest rate front, traders are pricing about a 63% chance of a Federal Reserve rate cut in September, according to the CME FedWatch tool.
On Friday, Fed Governor Christopher Waller advocated for a rate cut as early as this month, sending gold higher by nearly 1%.
(With files from Reuters)