May 5(Reuters) - Gold prices rose more than 1% on Monday, helped by a weaker dollar, with investors looking forward to more details on the U.S.-China trade negotiations and the Federal Reserve's policy meeting later this week.
Spot gold rose 1.8% to $3,298.09 an ounce, as of 0928 GMT, after posting its worst week since February last week. U.S. gold futures climbed almost 2% to $3,306.50.
The dollar index (.DXY), opens new tab was down 0.3% against its rivals, making gold more attractive for other currency holders.
"The U.S. dollar is slowing down and that is a positive for gold, more investors are betting that the Fed will cut rates relatively soon after last week's US GDP data came below expectation and now with what's going on with oil," said Carlo Alberto De Casa, external analyst at Swissquote.
Although the Fed is widely expected to leave rates steady on Wednesday, market focus will be on economic projections, more clarity on future rate cuts and speeches by several Fed officials.
U.S. President Donald Trump said he will not remove Jerome Powell as Fed Board Chairman before his term ends in May 2026, while reiterating his call for the Fed to cut interest rates.
Non-yielding gold acts as a hedge against global uncertainty and inflation and tends to thrive in a low-interest-rate environment.
Trump on Sunday said the U.S. was meeting with many countries, including China, on trade deals, and his main priority with China was to secure a fair trade deal.
"With Chinese solar production now slowing amid oversupply, high U.S. recession risk and central bank gold buying remaining strong in 2025, we expect gold to continue outglittering silver," Goldman Sachs said in a note.
Elsewhere, spot silver rose 1.2% to $32.37 an ounce, platinum was up 0.1% to $961.35 and palladium gained 0.8% to $961.52.
Reporting by Brijesh Patel in Bengaluru; Editing by Vijay Kishore
