Gold edged lower ahead of key economic data this week that could offer some insights into the impacts of President Donald Trump’s trade war.
Bullion traded near $3,335 an ounce, after gaining 0.7 per cent in the previous session. Yields on Treasuries turned lower on Monday, boosting non-interest-bearing gold. Meanwhile, JPMorgan Chase & Co. said it expects another wave of dollar weakness as investors keep selling U.S. assets under Trump’s policies. The greenback fell 0.5 per cent on Monday, making bullion cheaper for most buyers as the metal is priced in the currency.
Traders continue to weigh the outlook for the global economy amid heightened uncertainty over the impacts of the fast-developing U.S.-led trade war, which has stoked haven demand for gold and led to its record-breaking run in recent months. The consequences of Trump’s tariff agenda should become even clearer this week, with reports due on everything from American jobs to inflation and economic growth.
On Monday, a widely followed measure of Texas manufacturing activity weakened significantly as executives used words like “chaos” and “insanity” to describe the turmoil spurred by the White House’s tariffs, according to a report by the Federal Reserve Bank of Dallas.
There seems little prospect of a reprieve in the U.S.-China trade war. Treasury Secretary Scott Bessent told CNBC that the U.S. has put China to the side for now and indicated it’s up to Beijing to take the first step in de-escalating the fight. The Chinese Foreign Ministry again denied it was in talks with Washington to find ways to whittle down the wall of tariffs separating the two largest economies.
Gold has climbed more than 25 per cent this year as the trade war, expectations for a global slowdown, and tensions between the Trump administration and the Federal Reserve drove haven demand. The gains have also been supported by inflows into bullion-backed exchange-traded funds, central-bank buying and signs of strong speculative demand in China, even as physical consumption in the world’s biggest buyer falls.
Gold for immediate delivery was down 0.3 per cent to $3,334.08 an ounce as at 8:06 a.m. in Singapore. The Bloomberg Dollar Spot Index was up 0.1 per cent. Silver and palladium edged lower, while platinum was little changed.
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