Gold prices steadied during Asian trading on Monday, maintaining last week’s gains as investors expressed cautious optimism ahead of major US-China trade discussions slated to occur in London later today.

Meanwhile, platinum prices soared by over 2%, reaching a four-year peak based on expectations surrounding tighter overall supplies, making it the standout performer of the precious metals.

Gold Holds Just Below Multi-Month Highs

• Spot gold remained unchanged at $3,310.61/oz

• August gold futures fell 0.5% to $3,330.65/oz

Despite Friday’s stronger-than-expected US nonfarm payrolls data—briefly boosting the dollar—gold maintained its ground due to economic uncertainty, weaker dollar, and renewed risk-off flows.

The price of gold now rests just $200 below record highs, with investors still leaning toward safe-haven assets amid persisting macroeconomic risks.

Dollar Weakness and Trade Talks Influence market Perceptions

The US Dollar Index saw a decrease in Monday’s Asian session, providing some reprieve for dollar-denominated commodities. Market participants seem hesitant to bolster exposure to US assets before possible shifts in trade policy.

US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer are set to engage with China’s Vice Premier He Lifeng in London. They aim to mitigate ongoing disputes regarding tariffs, tech exports, and critical mineral exports.

A favorable outcome could lessen geopolitical risk; however, gold traders remain wary, seeking more than just temporary resolutions.

Platinum Breaks Out on Supply Optimism

Platinum surged by over 2% in response to forecasts indicating tightening supply amid geopolitical instability and mining disruptors. This rally represents a strong technical breakout, with prices now at their highest since 2021.

Given ongoing steady demand from the auto and industrial sectors, platinum benefits from both supply constraints and a broader precious metal rally.

Future Outlook

While risk sentiment has slightly improved, demand for gold remains strong, supported by enduring uncertainties and the weakening dollar. Should unexpected complications arise in US-China negotiations, gold may see another uptick in value.