WASHINGTON (dpa-AFX) - Gold price moved higher on Monday as the US dollar weakens without a respite, even with the Middle Eastern crisis seemingly coming to an end.
Front Month Comex Gold for July delivery was up $20.70 (or 0.63%) to $3,294.40 per troy ounce today. Notably, gold gained $171.60 (or 5.50%) this quarter.
Front Month Comex Silver for July delivery was down 18.50 cents (0.51%) to $35.582 per troy ounce today. However, silver gained $1.3950 (or 4.05%) this quarter.
Gold price which rose after Israel attacked Iran on June 12th but dipped last week following the ceasefire announced by President Donald Trump.
The truce of the 12-day war between Israel and Iran continued to hold without violations from either side. As the Middle East crisis ended peacefully - at least for now - stock markets gained from fund diversion to stocks as safe-haven demand faded by cutting into the risk-premium.
On the global trade front, the US government announced that a framework for a deal with China (based on the agreement in Geneva last month) has been reached. In particular, the US gets the much-needed rare earth minerals for its electric vehicle and defense sectors from China.
In addition, Trump hinted about a 'very big deal' with India. Reports suggest the US is negotiating with its many other major trading partners.
On Friday, Trump announced he was ending all trade discussions with Canada after its digital services tax on American technology companies.
Following this, on Sunday, Canada scrapped the taxes, halting a new trade stand-off.
Despite anxieties on the geopolitical as well as trade fronts disappearing, a weak US dollar supported bullion today.
With the US economic data from last week pointing to a slowdown in the economy, interest rate cuts by the US Federal Reserve are eagerly awaited by investors. A lower interest rate could kick start the economy and stock markets could gain momentum.
Right now, along with the passing of Trump's 'big, beautiful bill,' traders are looking ahead to the US job market data to discern more about the way the economy is moving as well as to gauge the Federal Reserve's monetary policy ahead.
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