Dollar Weakens, Gold Remains Stagnant
Gold prices traded relatively flat around US$4,030 per troy ounce on Monday (Aug 3). While a weaker US dollar provided some price support, easing geopolitical tensions dampened demand for gold as a safe-haven asset.
Market sentiment improved following optimism regarding the potential for a deal between the United States and Iran. President Donald Trump stated that new talks would begin on Monday after Washington postponed planned strikes against Tehran.
However, Iran denied that direct negotiations with the United States were underway. These conflicting statements kept investors cautious, as the likelihood of reaching an agreement remains uncertain.
Oil prices fell sharply on hopes that the conflict would de-escalate. The drop in energy prices helped alleviate inflation concerns and reduced expectations that the Federal Reserve would need to keep interest rates high for an extended period.
Gold's movement remained limited as dollar weakness was offset by waning safe-haven demand. Market focus now shifts to upcoming US labor data—particularly Friday's Nonfarm Payrolls report—which could determine the direction of the dollar, bond yields, and gold prices.
Source: Newsmaker.id