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Treasury chief cites progress in priority negotiations

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Trump cuts off US trade talks with Canada

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Asian stocks strengthen with Wall Street futures pointing

higher

(Updates for Asia morning hours)

By Anmol Choubey

June 30 (Reuters) - Gold reversed course and edged

higher on Monday, supported by a weaker dollar, after hitting a

more than one-month low earlier as easing U.S.-China trade

tensions dampened safe-haven demand and bolstered risk appetite.

Spot gold rose 0.3% to $3,281.65 per ounce, as of

0216 GMT, after hitting its lowest since May 29 earlier in the

session.

U.S. gold futures were up 0.2% at $3,293.30.

"There is less of a 'doom and gloom' outlook surrounding

both tariff talks and events in the Middle East, which is

relegating gold to play second fiddle to risk assets," KCM Trade

Chief Market Analyst Tim Waterer said.

Asian shares firmed, with Wall Street futures advancing,

while U.S. dollar index fell 0.2%. A lower dollar makes

greenback-priced bullion less expensive.

The U.S. and China have resolved issues surrounding

shipments of rare earth minerals and magnets to the U.S.,

Treasury Secretary Scott Bessent said on Friday, adding, the

Trump administration's various trade deals with other countries

could be done by the September 1 Labor Day holiday.

Meanwhile, U.S. President Donald Trump abruptly cut off

trade talks with Canada on Friday over its tax targeting U.S.

technology firms, saying that it was a "blatant attack" and he

would set a new tariff rate on Canadian goods within a week.

The Iran-Israel ceasefire after a 12-day conflict also

appeared to be holding, further reducing safe-haven demand.

"The dollar remains pressured which is limiting the extent

of the slide for gold. However, the $3,250 level shapes as a key

support level for gold. Any breach of this level could see

losses accelerate towards the $3,200 level," Waterer said.

Stable geopolitical and economic conditions often reduce

demand for gold as a safe-haven asset, while non-yielding

bullion's appeal further wanes in a high-interest-rate

environment.

Spot silver was down 0.1% at $36.02 per ounce,

platinum firmed 1% to $1,353.13, while palladium

was up 0.2% at $1,135.48.