Gold edged up, supported by a dip in the dollar, as US trade talks progressed ahead of a July 9 deadline and Senate negotiations continued over President Donald Trump's $4.5 trillion tax cut package. 

Bullion fell as much as 0.8% on Monday before paring losses to trade slightly higher, following two consecutive weekly declines. With just 10 days to go until Trump's country-specific tariffs are set to resume, investors were weighing signs of potential trade progress following recent comments from top White House advisers that indicated the US is nearing agreements with several nations.

Still, there's plenty of uncertainty over the scope of the deals currently being discussed. If Trump's only two other accords — with China and the UK — offer any indication, the pacts likely won't be fulsome deals that resolve core issues and may leave many specifics to be negotiated later.

Investors were also focusing on Trump's $4.5 trillion tax-cut bill in the Senate as Republicans seek to convince holdouts to support the legislation for final passage, with a vote set to spill into Monday. The bill's cost has been a big problem for fiscal conservatives amid concerns that it will further swell the deficit.

The precious metal is up by about a quarter this year and is trading around $220 short of a record high set in April, supported by demand for havens as investors grappled with elevated geopolitical and trade tensions. Still, gold is on track for its first monthly decline in 2025 as concerns about the Middle East conflict ease, and the US economy shows an improvement in consumer sentiment and inflation expectations. 

Spot gold was up 0.2% to $3,280.44 an ounce as of 11:52 a.m. in Singapore. The Bloomberg Dollar Spot Index slipped 0.2%. Silver, platinum and palladium all climbed.

Source: Bloomberg