Gold inches higher as markets weigh US trade, Fed policy outlook

Gold bars

Gold prices edged slightly higher as concerns over the US-led trade war eased and markets assessed the outlook for US monetary policy.

During Monday’s trading, gold futures for August delivery rose by 0.1%, or $3.1, to $3,338.7 an ounce.

Spot gold was also up 0.1%, or $3.42, at $3,340.72 an ounce as of 08:32 a.m. Makkah time.

Meanwhile, the US Dollar Index, which tracks the greenback against a basket of six major currencies, held steady at 97.69 points.

Silver futures for September delivery were flat at $38.37 an ounce, while spot platinum gained 1.15% to $1,422.31. Spot palladium rose 2.7% to $1,257.67.

US President Donald Trump held a meeting Friday with Federal Reserve Chair Jerome Powell, describing it as positive, fueling hopes for a rate cut, according to Reuters.

On Sunday, the US and the European Union struck a framework trade agreement that will impose a 15% tariff on most EU goods. Meanwhile, top US and Chinese negotiators are set to meet today in a bid to extend the truce that has so far prevented further tariff hikes.