LONDON: Gold dropped by half a percentage point on Monday, retreating from two-month highs under pressure from a strengthening dollar and a slight easing of tensions between the US and North Korea.
Though North Korea’s Liberation Day celebration on Tuesday could raise the temperature again, markets were relieved that the weekend passed without more inflammatory rhetoric.
Elsewhere, the dollar rose from last week’s four-month lows against the yen and traded up against a currency basket, making dollar-priced gold costlier for non-US investors.
“A lot of the negative news is priced into the dollar. That, combined with no real escalation in North Korea, should lead to lower gold prices, though it does not mean we expect a very negative trend.
“We will stay within the $1,200 to $1,300 range for the year,” said ABN Amro strategist Georgette Boele.
Spot gold fell 0.6 percent to $1,280.45 an ounce by 1004 GMT, having reached its highest since June 7 at $1,291.86 in the previous session. US gold futures for December delivery fell 0.6 percent to $1,286.90.
Consumer prices in the US rose less than expected in July, data showed on Friday, suggesting benign inflation that could persuade a cautious Federal Reserve to delay raising US interest rates until December.
“As a result (of the weak inflation data), rate hike expectations according to the Fed Fund Futures have dropped to their lowest level since November, which should benefit gold,” Commerzbank said in a note.
Gold is highly sensitive to rising interest rates because they increase the opportunity cost of holding non-yielding bullion.
Hedge funds and money managers boosted their net long, or buy, position in COMEX gold for the fourth straight week to a near two-month high in the week to Aug. 8, data showed on Friday.
Spot gold faces strong resistance at $1,291 an ounce and could hover below this level or retrace to support at $1,278, said Reuters technical analyst Wang Tao.
Among other precious metals, silver fell 0.5 percent to $16.98 per ounce, having climbed last week to its highest since mid-June.
Platinum fell 1.2 percent to $968.50 after hitting a five-month high on Friday, while palladium rose 0.1 percent to $893.40.
Gold falls as North Korea tensions ease, dollar gains
Gold falls as North Korea tensions ease, dollar gains
Gulf-EU value chain integration signals shift toward long-term economic partnership: GCC secretary general
RIYADH: Value chains between the Gulf and Europe are poised to become deeper and more resilient as economic ties shift beyond traditional trade toward long-term industrial and investment integration, according to the secretary general of the Gulf Cooperation Council.
Speaking on the sidelines of the World Governments Summit 2026 in Dubai, Jasem Al-Budaiwi said Gulf-European economic relations are shifting from simple commodity trade toward the joint development of sustainable value chains, reflecting a more strategic and lasting partnership.
His remarks were made during a dialogue session titled “The next investment and trade race,” held with Luigi Di Maio, the EU’s special representative for external affairs.
Al-Budaiwi said relations between the GCC and the EU are among the bloc’s most established partnerships, built on decades of institutional collaboration that began with the signing of the 1988 cooperation agreement.
He noted that the deal laid a solid foundation for political and economic dialogue and opened broad avenues for collaboration in trade, investment, and energy, as well as development and education.
The secretary general added that the partnership has undergone a qualitative shift in recent years, particularly following the adoption of the joint action program for the 2022–2027 period and the convening of the Gulf–European summit in Brussels.
Subsequent ministerial meetings, he said, have focused on implementing agreed outcomes, enhancing trade and investment cooperation, improving market access, and supporting supply chains and sustainable development.
According to Al-Budaiwi, merchandise trade between the two sides has reached around $197 billion, positioning the EU as one of the GCC’s most important trading partners.
He also pointed to the continued growth of European foreign direct investment into Gulf countries, which he said reflects the depth of economic interdependence and rising confidence in the Gulf business environment.
Looking ahead, Al-Budaiwi emphasized that the economic transformation across GCC states, driven by ambitious national visions, is creating broad opportunities for expanded cooperation with Europe.
He highlighted clean energy, green hydrogen, and digital transformation, as well as artificial intelligence, smart infrastructure, and cybersecurity, as priority areas for future partnership.
He added that the success of Gulf-European cooperation should not be measured solely by trade volumes or investment flows, but by its ability to evolve into an integrated model based on trust, risk-sharing, and the joint creation of economic value, contributing to stability and growth in the global economy.
GCC–EU plans to build shared value chains look well-timed as trade policy volatility rises.
In recent weeks, Washington’s renewed push over Greenland has been tied to tariff threats against European countries, prompting the EU to keep a €93 billion ($109.7 billion) retaliation package on standby.
At the same time, tighter US sanctions on Iran are increasing compliance risks for energy and shipping-related finance. Meanwhile, the World Trade Organization and UNCTAD warn that higher tariffs and ongoing uncertainty could weaken trade and investment across both regions in 2026.
