Gold held near the highest in a month, as risk-off sentiment returned among investors watching the progress of trade negotiations ahead of US President Donald Trump's Aug. 1 tariff deadline.

Bullion traded near $3,395 an ounce after closing 1.4% higher in the previous session, as concerns about Trump's next trade moves reignited demand for havens. White House Press Secretary Karoline Leavitt on Monday said the president may issue more unilateral tariff letters before Aug. 1. The dollar had its worst day in nearly a month, making gold cheaper for most buyers.

Investors were also weighing the outlook for the Federal Reserve's interest-rate path ahead of next week's policy decision. Officials have recently expressed differing views on how Trump's tariff agenda will impact inflation, with Fed Governor Christopher Waller advocating for a rate cut even as most of his colleagues remain more cautious. Lower borrowing costs tend to benefit gold, as it doesn't pay interest.

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Swaps markets show virtually zero possibility of a cut to Fed rates next week. For the rest of the year, traders are betting the Fed will lower by a total of 46 basis points, a level that's little changed from Friday.

Gold has climbed more than a quarter this year, as uncertainty around Trump's aggressive attempts to reshape global trade and conflicts in Ukraine and the Middle East spark flight to havens. The precious metal has been trading within a tight range over the past few months.

Spot gold was at $3,396.13 an ounce at 8:31 a.m. in Singapore. The Bloomberg Dollar Spot Index was little changed, after a loss of 0.5% in the previous session. Silver and platinum were steady, while palladium rose.

Source: Bloomberg