Similar to gold, the weakness in silver is also linked to the uncertainty surrounding potential U.S. tariffs on imported silver. Last week, silver prices surged as traders digested rumors of tariffs on kilogram-grade silver, but as the long-term implications became clearer, the upward momentum diminished.

Trump also posted yesterday, vowing not to impose tariffs on gold. With this, the market finally realized that the U.S. never had any intention of taxing gold all along, leaving investors hoarding gold in New York since February thoroughly disappointed. Gold inventories at COMEX in New York have also been continuously declining since April.

The clean breakout above 4,000 earlier this month further reinforces the bullish scenario.

The Canadian dollar is under pressure amid weakening crude oil prices, which hover near two-month lows as optimism about Ukraine peace talks sparks hopes for eased Russian energy sanctions.

The Swiss franc weakened on Monday as investors favoured risk assets and positioned ahead of key U.S. inflation data, while the dollar advanced on optimism over a potential U.S.-China trade agreement.

Gold prices slid on Monday as fading safe-haven demand and improving investor risk appetite weighed on the metal, with markets focusing on US-Russia diplomacy and upcoming Federal Reserve policy moves.