Gold prices rebound from one-month low due to weaker U.S. dollar and trade optimism

From Financial Modeling Prep: 2025-06-30 08:07:00

Gold prices rose in Asian trade, recovering from a one-month low due to a weaker U.S. dollar and trade optimism. Spot gold increased 0.5% to $3,290.25/oz, with futures up 0.4% at $3,300.00/oz. Despite last week’s 3% drop, gold remained flat month-to-date after geopolitical gains were erased by selling pressure.

A U.S.-brokered ceasefire between Israel and Iran reduced geopolitical uncertainty, limiting safe-haven demand for gold. The deal led traders to shift back into risk assets like equities. Rising optimism around U.S. trade pacts also supported gold prices, with a U.S.-China agreement and U.S.-U.K. deal taking effect.

Gold’s rebound was supported by a weakening U.S. dollar, making dollar-denominated commodities more appealing to foreign investors. The U.S. Dollar Index fell 0.2% to a three-year low, increasing bets for a Federal Reserve rate cut by September. The next price action for gold will depend on Fed guidance, tariff developments, and trade diplomacy outcomes.



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