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Investing.com--Gold prices edged higher from a one-month low Monday, supported by a weaker dollar, though safe-haven demand stayed muted amid easing Middle East tensions and optimism over potential U.S. trade deals.
At 06:00 ET (10:00 GMT), Spot Gold rose 0.4% to $3,288.30 an ounce, and Gold Futures for August gained 0.4% to $3,300.0/oz.
Bullion fell nearly 3% last week, marking its steepest weekly drop since early May, and was on track to end the month slightly lower as early gains from geopolitical tensions were erased by losses after the Israel-Iran ceasefire.
Gold supported by weak dollar; heading for monthly losses
A ceasefire between Israel and Iran brokered by U.S. President Donald Trump last week eased geopolitical risk in the Middle East and curbed the appeal of gold.
On the trade front, a U.S.-China deal signed last week in Geneva, which resolves rare-earth shipments and trims key trade friction, bolstered sentiment.
Meanwhile, a U.S.-U.K. trade agreement came into effect Monday, slashing car tariffs to 10% and fully eliminating aircraft parts duties, while Canada decided to rescind its digital services tax on tech businesses mere hours before it was due to take effect, allowing Prime Minister Mark Carney and U.S. President Donald Trump will now hold talks with the goal of reaching a trade deal by July 21.
However, the broader July 9 deadline looms for the potential reinstatement of duties on other trading partners, and for global steel and aluminum tariffs.
"Additional pressure on gold prices also stems from expectations that Fed Chair Jerome Powell may not be in a hurry to implement further rate cuts, considering inflation continues to exceed long-term targets and the Fed is observing the unfolding impact of import tariffs," said analysts at ING, in a note.
The US Dollar Index fell Monday, remaining near a three-year low, offering a source of minor support for the gold market.
A weaker dollar makes the commodity cheaper for foreign buyers, thus increasing its demand.
Platinum set for 30% monthly jump
Platinum Futures jumped 1.9% to $1,377.00 after a recent pullback from a more than decade-high. The precious metal was set to climb more than 30% this month.
Silver Futures were 0.2% lower at $35.988 per ounce.
Meanwhile, benchmark Copper Futures on the London Metal Exchange were 0.3% lower at $9,850.10 a ton, while U.S. Copper Futures rose 0.5% to $5.0938 a pound.
Gains in the red metal were capped as data showed China’s manufacturing sector contracted in June, highlighting ongoing weakness in external demand amid elevated U.S. trade tariffs on the world’s top copper importer.
"We believe copper prices are likely to stay supported, at least for now, if the LME stocks withdrawals continue," said analysts at ING, in a note. "However, U.S. tariffs being implemented on copper would be bearish for copper prices, with the wave of copper rushing to the U.S. likely to stop, at least for a while. Consumers are likely to start to work through their inventories. This will also likely improve the availability of copper ex-U.S. and weigh on copper prices."
Ayushman Ojha contributed to this article