Gold prices increased in the first session of the week as the USD weakened, in the context of investors waiting for more information about US-China trade relations and the US Federal Reserve (FED) policy meeting to take place this week.
The US dollar is quite quiet ahead of the Fed meeting, which creates conditions for gold to increase, said Tim Waterer, a market analyst at Ho Chi Minh City Trade.
Gold could continue to fluctuate between $3,200 and $3,350 an ounce ahead of the Fed meeting. However, any new information about trade negotiations could cause strong price fluctuations again, the expert said.
The market is focusing on the Fed's monetary policy decision and speeches from senior officials to find clues for the upcoming direction of interest rates.
Traders now expect the Fed to cut a total of 80 basis points this year, starting in July, after the April jobs report showed that the number of new jobs far exceeded expectations.
Gold is not profitable, often seen as a safe haven in times of uncertainty and inflation, and tends to benefit in a low interest rate environment.
US President Donald Trump has said he will not replace Fed Chairman Jerome Powell before his term ends in May 2026, and continues to call on the Fed to cut interest rates.
Mr. Trump also said that the US is in trade negotiations with many countries, including China, and the top priority is to reach a fair deal.
The Chinese market will be closed for the Labor holiday from January 1 to May 5 and will trade again on May 6. China, the world's largest gold consumer, has temporarily suspended trading, creating a significant liquidity gap in the global gold market.
Spot silver prices increased by 0.5% to 32.14 USD/ounce; platinum decreased by 0.2% to 957.77 USD/ounce; palladium increased by 0.2% to 955.28 USD/ounce.
