Gold prices climbed on Monday, supported by a weaker U.S. dollar and investor caution ahead of the August 1 deadline for potential U.S. tariffs. U.S. gold futures rose 0.45% to $3,373.60.
The dollar slipped 0.3% against major currencies, making gold more attractive to holders of other currencies. Uncertainty around global trade and diverging views among Federal Reserve officials on interest rate policy added to market caution.
Fed Governor Christopher Waller reiterated his support for a rate cut, while others remain wary due to inflation risks potentially worsened by tariffs. Lower interest rates typically boost gold, which does not yield interest. President Trump has continued to pressure the Fed for cuts, as the White House eyes a potential successor to Chair Jerome Powell.
On trade, U.S. Commerce Secretary Howard Lutnick expressed optimism about a deal with the EU, but maintained August 1 as a firm deadline for new tariffs. The EU is reportedly preparing for possible retaliatory steps in case talks fail.
Despite recent dips in Chinese gold imports, the metal remains up over 25% this year, with investors seeking safety amid geopolitical tensions, dollar concerns, and uncertainty over global trade and monetary policy.