Gold rebounds from one-month low amid weakening dollar

Gold prices reversed course on Monday on the back of a weaker dollar, heading upward and hitting marks above $3,280. Earlier, the price of the main precious metal collapsed to a more than one-month low after easing in trade tensions between the US and China weakened demand for safe-haven assets and increased investor appetite for risk.

As KCM Trade chief market analyst Tim Waterer noted, investor and trader sentiment became less gloomy as tariff talks continued and events in the Middle East began to stabilize to some extent. This had previously sidelined gold against risk assets.

However, a 0.2% drop in the US dollar index made bullion cheaper for holders of other currencies and helped restore interest in the yellow metal.

According to Waterer, as long as the dollar remains under pressure, the scale of gold's decline is limited. Still, as he emphasized, the $3,250 level is a key support level for the metal. Any breakdown below this mark could lead to an acceleration of the price decrease to $3,200.