Gold prices rose on Monday as the dollar fell against most major rivals with traders assessing the latest US-China trade talks. 

High-level talks between US and Chinese officials commenced today in London, with the hopes of reaching some sort of an initial agreement on tariffs and trade.

Markets also closed await US consumer prices data later on Wednesday, followed by producer prices data on Friday to gather more clues on the path ahead for the Fed’s interest rates.

Otherwise, the dollar index fell 0.2% as of 18:07 GMT to 98.9, with a session-high at 99.2, and a low at 98.8.

On trading, gold spot prices rose 0.3% as of 18:08 GMT to $3356.8 an ounce. 

Most US stock indices, except the Dow, rose on Monday as the US-China trade talks resumed. 

High-level talks between US and Chinese officials commenced today in London, with the hopes of reaching some sort of an initial agreement on tariffs and trade.

Markets also closed await US consumer prices data later on Wednesday, followed by producer prices data on Friday to gather more clues on the path ahead for the Fed’s interest rates.

On trading, Dow Jones fell 0.1% as of 17:17 GMT, or 12 points to 42,750 points, while S&P 500 shed 0.1%, or 6 points to 6006 points, as NASDAQ added 0.2%, or 45 points to 19,575 points. 

Bitcoin settled in the past three days between $103,800 and $106,900 after a duration of sharp volatility due to the Trump-Musk public dispute.

The price could be swayed soon by the US consumer price index, which is likely under pressure due to Trump’s tariffs.

Consumer prices are expected up 0.3% m/m and 2.3% y/y, while core prices are expected up 2.9% y/y.

Higher inflation would reduce the odds of future Fed rate cuts, in turn hurting the crypto industry. 

Analysts are mixed on the outlook of bitcoin, with some expecting a sharp correction towards $95,000, while others believe bulls remain in control with the price heading towards the $140,000-$150,000 range.

Technical Signals Hint at $140,000

Multiple technical signals and indicators likely pave the way towards a solid breach of the $112,000 recent record high, with a solid target at $143,000, representing a 35% profit. 

Traders are also on edge as the US conducts trade talks with China in London, which could have an impact on the crypto industry.

The previous talks in Geneva led both sides to suspend most tariffs for 90 days, underpinning the S&P 500 and the crypto markets.

But tensions have brewed once again since then with both sides accusing the other of violating the deal and restructuring critical minerals and products unfairly. 

Global Corporations Buy up Bitcoin 

Strategy’s Chairman Micheal Salyor hinted on the X platform at new upcoming bitcoin purchases under a new plan for the company’s wallet.

From Japan, MetaPlanet issued 555 million shares with the target of collecting $5.4 billion to buy more bitcoins, aiming at gathering 210,000 bitcoins overall by 2027, thus sending the company’s share over 15% higher.

Oil prices were little changed on Monday as investors await important US-China trade talks in London in hopes of reaching a deal that would boost global economic performance and fuel demand.

Brent crude futures rose 4 cents to $66.51 a barrel, while US West Texas shed a cent to $6.57 a barrel as of 09:40 GMT.

Brent rose 4% last week while US crude rallied 6.2% on higher rish appetite amid hopes for a US-China trade deal.

London Trade Talks

Later today in London, The US and China will conduct new trade talks following the crucial Trump-Xi trade talk last week, which helped accelerate the momentum of negotiations between both sides.

However, the prices remain under pressure after data showed Chinese exports fell to a three-month low in May, while producer prices hit a two-year nadir.

Such a weak performance for the Chinese economy doesn’t bode well for the prospects of fuel demand in the world’s largest fuel importer.

Recent data already showed China’s crude imports fell in May to a four-month low as refining companies start scheduled maintenance shutdowns. 

US West Texas Outlook

US crude prices are showing signs of lost momentum after stalling at 64.80 a barrel and dropping below the 23.6% Fibonacci level at $64.32.

Next supports lie at $64.02 and $63.78, with a breach sending the price deeper into $62.29.

Brent Outlook

Brent prices tapered off its $66.61 highs and now trades below the 23.6% Fibonacci level at $66.18.

The next support lies at $65.92 at the 38.2% Fibonacci level, followed by $65.70 then $65.48, with breaches opening the door for a deeper correction towards $65.18.