In a world where global markets balance on the brink of fresh U.S.–China negotiations and a critical Federal Reserve meeting, gold found support in Monday’s Asian session, even though the upside appeared to be capped by renewed risk appetite.

Factors Driving Gold’s Rise

• Dollar Weakness: The U.S. Dollar Index retreated 0.2% in Asia, boosting the attractiveness of bullion to international buyers.

• Optimism on Trade Talks: Chinese officials have indicated they are reconsidering talks with Washington, while U.S. reports suggest outreach—diminishing safe-haven appeal.

• Federal Reserve Outlook: Traders are cautious ahead of the Fed’s policy decision later in the week, anticipating rates to hold steady as officials assess tariff-driven inflation risks.

As of 00:18 ET (04:18 GMT), spot gold prices increased 0.5% to $3,255.95/oz, whereas June futures rose 0.7% to $3,266.67/oz.

Context: Last Week’s Decline

Gold managed to bounce back from a 2% pullback observed last week due to:

1. Reduced Trade Tensions: Initial reports regarding U.S.–China détente spiked equities and diminished gold’s appeal.

2. Strength in Risk Assets: A global stock rally momentarily put safe havens under pressure.

With immediate fears subsiding, gold is realigning around essential technical and fundamental metrics.

What to Monitor Next

1. U.S.–China Negotiations

Market participants will closely analyze communiqués for hints of tariff rollbacks, as any progress could significantly influence bullion flows.

2. Federal Reserve Policy

The Fed’s careful approach to rate changes—designed to allow the ramifications of trade tariffs to surface—keeps gold sensitive to shifts in expectations surrounding rate pauses. Check the detailed schedule to determine when Fed announcements are expected.

3. Commodity Trends

Fluctuations in other commodities often correlate with gold’s performance. Real-time data will help monitor base-metal price trends alongside gold.

Precious Metals Overview

Conclusion

The modest rebound in gold prices highlights its dual nature: it serves as a hedge against a weakening dollar and rising trade risks while also reflecting global risk sentiment. With U.S.–China discussions and Federal Reserve guidance on the horizon, gold traders should remain agile—using real-time insights for monitoring and positioning.