Gold prices were flat to slightly lower on Monday, failing to find safe-haven support despite dollar weakness.
Spot gold was little changed near a one-week high at $1,229 an ounce while U.S. gold futures for August delivery were marginally lower at $1,229.80 an ounce.
The dollar hovered near its lowest level in nearly two weeks after U.S. President Donald Trump talked of more tariffs on China and continued his attack on the Federal Reserve for raising interest rates, saying policy tightening penalizes the U.S. for doing well.
Trump’s criticism of currency manipulation by China and the European Union and media reports suggesting that the Bank of Japan is considering modifying its ultra-loose monetary policy also added to the dollar’s weakness.
In another development, Trump on Sunday warned Iran of consequences “the likes of which few throughout history have ever suffered,” if it threatens the United States.
There’s normally an inverse relationship between the value of the U.S. dollar and commodity prices. Gold may capitalize on the dollar’s weakness if trade tensions put the currency under additional downward pressure.