Gold maintained its position on Monday following a decline to a one-week low, as focus shifted towards U.S. President Donald Trump’s discussions with Ukrainian President Volodymyr Zelenskiy and European leaders regarding a potential peace agreement with Russia. Spot gold experienced a modest increase of 0.1%, reaching $3,340.71 per ounce as of 0040 GMT, following a decline to its lowest level since August 1.
U.S. gold futures for December delivery experienced a modest increase of 0.1%, reaching a price of $3,385.70. European leaders are scheduled to convene with Zelenskiy on Monday for discussions involving Trump. * According to sources familiar with Moscow’s perspective, peace proposals discussed by Vladimir Putin and Trump at their Alaska summit suggest that Russia would give up small areas of occupied Ukraine, while Kyiv would concede significant portions of its eastern territory that Moscow has failed to seize.
Benchmark 10-year U.S. Treasury yields remained at a near two-week high, while the U.S. dollar index experienced a slight decline, resulting in gold becoming more affordable for international purchasers. * Market participants are keenly anticipating the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, seeking guidance on the trajectories of interest rate reductions.
Last week, the data on consumer and wholesale prices seemed to convey conflicting messages about the economic effects of Trump’s import tariffs. A consensus among economists surveyed by Reuters indicates an anticipation of a rate cut by the Fed in September, marking its inaugural reduction this year, with the potential for a subsequent cut before the year’s conclusion, driven by escalating concerns regarding the U.S. economy.
Non-yielding bullion, regarded as a safe-haven asset during times of uncertainty, typically exhibits strong performance in a low-interest-rate environment. Meanwhile, a source indicated that a scheduled visit by U.S. trade negotiators to New Delhi from August 25-29 has been canceled. Elsewhere, spot silver rose 0.2% to $38.07 per ounce, platinum gained 0.3% to $1,339.30, and palladium was up 0.8% to $1,121.