Gold steady as investors await US trade updates, central bank meetings
Spot gold held its ground at $3,352.19 per ounce, as of 0250 GMT. U.S. gold futures were steady at $3,358.70.
'Dollar has made a subdued start to the week, which has left the door open for gold to post gains early doors with tariff deadlines looming large,' KCM Trade Chief Market Analyst Tim Waterer said.
'The closer we move towards the key August 1 deadline without any new trade deals emerging, the more likely gold is to start fancying another run to towards the $3,400 level and perhaps beyond.'
Investors are eyeing developments in trade negotiations ahead of U.S. President Donald Trump's August 1 deadline, as U.S. Commerce Secretary Howard Lutnick remains optimistic about reaching a deal with the European Union.
Trump might visit China before going to the Asia-Pacific Economic Cooperation summit between October 30 and November 1, or he could meet Chinese leader Xi Jinping on the sidelines of the APEC event in South Korea, reports said.
At its meeting later this week, the European Central Bank is expected to hold interest rates steady at 2.0% following a string of cuts.
Last week, Federal Reserve Governor Christopher Waller said he still believes that the U.S. central bank should cut rates at its policy meeting next week.
Gold, often considered a safe-haven asset during economic uncertainties, tends to do well in a low interest rate environment.
In Japan, the ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power as the U.S. tariff deadline looms.
Elsewhere, spot silver edged 0.1% higher to $38.22 per ounce, platinum added 0.3% to $1,425.11 and palladium gained 0.2% to $1,243.47.
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Trump's belligerence drives a major shift in Indo-Pacific
The author writes on geopolitical issues and regional conflicts. He can be reached at Listen to article Donald Trump's implacable belligerence has tutored traditional American allies to quickly adjust to new geopolitical realities or truckle to his ceaseless demands. An increased sense of urgency across Europe and the Indo-Pacific implies that they have decided to take up the gauntlet of diversifying their partnerships. In a rare show of displeasure at the US president's stubborn arrogance, Australian Prime Minister Anthony Albanese during his China visit sought to stabilise relations and manage differences to "contribute" to regional peace and prosperity, holding a "constructive" meeting with Chinese President Xi Jinping to underscore Beijing's importance for "our economy, our security and the stability of our region". Beijing is Canberra's largest trading partner with almost a third of Australia's exports destined for China and bilateral trade hitting 312 billion Australian dollars in 2024. The two economies are highly complementary, meaning China has a huge demand for Australian goods and services. This symbiotic bond, unlike the Australia-US parasitistic trade ties, provides a sound footing to tap the opportunity and strengthen the extensive relationship. China's investments contribute to infrastructure development, productivity and job creation in Australia; and its development, opening-up and rising middle class unleash new vistas for Australian exporters. As members of Asia-Pacific Economic Forum and Regional Comprehensive Economic Partnership, both countries also have shared interests in safeguarding regional stability and prosperity. In the face of rising protectionism and unprecedented volatility in global trade due to Trump's unilateral tariffs, a stable and strengthened Australia-China relationship would ensure the Australian economy to withstand and navigate strenuous trials and continue to make a positive impact on domestic workers, employers and industries. The strengthening of the Beijing-Canberra ties has ushered in a wave of optimism among Australian businesses with 75% of foreign firms in a poll by the Australia-China Chamber of Commerce reporting profitability in 2024. Their enthusiasm — because 70% rate China as one of their top three destinations for investment over the next three years — reinforces Beijing's appeal as a hub of innovation and industrial transformation. Canberra's intent to "do more business with China" was reflected in its Trade Minister Don Farrell's interview in which he refused to budge to US pressure, emphasising that Chinese trade was nearly 10 times more valuable to Canberra. "We'll make decisions... to engage with China based on our national interests and not on what the Americans may or may not want." Nonetheless, disparity between Albanese's and the country's defence department's approaches risks derailing Australia's newfound charm offensive against China. For instance, Canberra has been accusing Beijing of spearheading the largest and most ambitious military buildup since the Second World War. Its Defense Minister, Richard Marles, recently echoed such an assertion. Yet this assessment has long been contested by none other than Australia's own analysts and former diplomats who believe the Chinese strategy is essentially inward looking, focusing internal stability and external security. Even leading Western investigations reveal that the US, by far, outspends China in defence spending and that Beijing's military development and the record of use of force are relatively restrained. Conversely, Trump's return is spurring new challenges for the Albanese government. After the Biden administration wanted to get Canberra "off the fence" by locking it for the next 40 years through AUKUS, Trump's AUKUS-skeptic undersecretary of defense Elbridge Colby is leveraging the trilateral partnership to hard-press Australia into making pre-commitments if a US-China war breaks out on Taiwan. The Trump administration is also pressurising Australia to increase defence spending to 3.5% of the GDP. Canberra has hitherto resisted the US pressure for it would cost Australia tens of billions of dollars. For an economy that will remain in a structural deficit through 2034-35, a defence splurge would indeed imperil Albanese's social policy agenda. Trade with China has helped Australia put the cost of living on a downward trajectory. Studies show that this trade relationship has increased disposable income of Australian households by an average of 2,600 Australian dollars, supporting around 600,000 jobs. While US maintains 10% baseline tariff on Australian goods, 25% on automobiles and 50% on steel and aluminum, Beijing thanks to the China-Australia Free Trade Agreement applies an average of just 1.1%, urging Canberra to rethink before jumping on Washington's bandwagon vis-à-vis Beijing. No wonder China is seen as a more reliable trade partner than the US by Australians with a sizeable majority of them (71%) agreeing that the country's relationship with Beijing is important. This comes as Trump has upended the long-held assumption that America could be a dependable ally, stoking a belief in many Aussies whether it could even act responsibly. Establishing diplomatic relations, Beijing and Canberra in 1972 agreed to develop the relationship on the basis of the principles of mutual respect for sovereignty, mutual non-aggression, non-interference in internal affairs, equality, mutual benefit and peaceful coexistence. These fundamental tenets laid the foundation of a robust Beijing-Canberra relationship as people across the two countries lived together peacefully through decades. Should Australia chuck out its schizophrenic ambivalence, both nations can still pioneer the way for a resilient strategic partnership and a secure and thriving Indo-Pacific.
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The science that wins on the battlefield and finds breakthrough in the bloodstream — that's the sharp edge of American power. American science that is funded by the federal government is launched from the flight deck. Developed by American industry. Proven on our factory floors. And tested on the front line - everyday. The only thing American science can't do. Fund itself. That depends on the wisdom and leadership of those we send to Washington." With Donald Trump occupying the White House, that is not happening.
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Military vehicles are seen in Sisaket province, as Cambodia and Thailand each said the other had launched artillery attacks across contested border areas early on Sunday, hours after US President Donald Trump said the leaders of both countries had agreed to work on a ceasefire, Thailand, July 27, 2025. Photo: Reuters Listen to article The leaders of Thailand and Cambodia will attend mediation talks over their deadly border conflict in Malaysia on Monday, the Thai government said, even as both sides accused each other of launching fresh artillery strikes across contested areas. Talks are scheduled to begin at 3 pm local time (0700 GMT) on Monday, with acting Prime Minister Phumtham Wechayachai leading the Thai negotiating team, the government announced in a statement on Sunday night. Malaysia, which chairs the ASEAN regional cooperation forum, has informed the Thai government that Cambodian Prime Minister Hun Manet would also be attending the talks, the statement said. Also Read: US, China to resume tariff talks in effort to extend truce Tensions between Thailand and Cambodia have intensified since the late-May killing of a Cambodian soldier during a brief border skirmish. Border troops on both sides were reinforced amid a full-blown diplomatic crisis that brought Thailand's fragile coalition government to the brink of collapse. Hostilities resumed on Thursday and, within just four days, escalated into the worst fighting between the Southeast Asian neighbours in more than a decade. The death toll has risen above 30, including 13 civilians in Thailand and eight in Cambodia, while authorities report that more than 200,000 people have been evacuated from border areas. Monday's talks come after Malaysian Prime Minister Anwar Ibrahim last week proposed a ceasefire and US President Donald Trump said on Saturday that the two leaders had agreed to work on a ceasefire. Calls for peace Bangkok and Phnom Penh have each accused the other side of sparking last week's hostilities. Cambodia's Defence Ministry said Thailand had shelled and launched ground assaults on Sunday morning at a number of points along the border. The ministry's spokesperson said heavy artillery was fired at historic temple complexes. "For me, I think it is great if Thailand agreed to stop fighting so both countries can live with peace," Phnom Penh university student Sreung Nita told Reuters. The Thai army said Cambodian forces had fired shots into several areas, including near civilian homes, on Sunday, and were mobilising long-range rocket launchers. "The situation remains tense and Cambodian troops may be preparing intensified military operations to inflict maximum damage in the final stages before negotiations," the army said in an update. In the Thai province of Sisaket, Reuters reporters heard shelling throughout Sunday and said it was unclear which side of the border it was on. Read: Israel announces daily pauses in Gaza fighting as aid airdrops begin A government health clinic about 10 km (6 miles) from the border had shattered windows, collapsed walls and exposed wiring. Local media reported it was hit by artillery on Saturday, two days after the building and surrounding neighbourhood was evacuated. Only a few men remained to look after their homes, camping near a makeshift bunker they had dug for protection. Intermittent sounds of artillery fire could be heard in the distance. "It's great that America is insisting on the ceasefire because it would bring peace," Sisaket resident Thavorn Toosawan told Reuters. Thailand and Cambodia have bickered for decades over undemarcated points along their 817-km (508-mile) land border, with ownership of the ancient Hindu temples Ta Moan Thom and the 11th century Preah Vihear central to the disputes. Preah Vihear was awarded to Cambodia by the International Court of Justice in 1962, but the situation worsened in 2008 after Cambodia attempted to list it as a UNESCO World Heritage site. Skirmishes over several years brought at least a dozen deaths. Cambodia said in June it had asked the International Court of Justice to resolve its disputes with Thailand. Bangkok says it has never recognised the court's jurisdiction and prefers a bilateral approach.
