WASHINGTON (dpa-AFX) - Gold prices fell sharply on Monday as geopolitical tensions eased and traders sought more clarity on U.S. tariff policy on Swiss gold.
Spot gold fell 1.2 percent to $3,357.69 per ounce in European trade while U.S. gold futures were down 2.1 percent at $3,416.87.
Investors looked ahead to U.S. President Trump's scheduled meeting with Russian President Vladimir V. Putin later in this week to negotiate an end to the war in Ukraine.
Trump suggested that a potential agreement to end the more than three-year old conflict in Ukraine could see the swapping of territory by both sides.
Meanwhile, the White House is preparing to issue an order clarifying the issue of gold bar import taxes after confusion over customs codes led some producers to suspend exports to the United States.
The dollar was steady ahead of this week's U.S. July CPI inflation report, which will shape the Federal Reserve's rate trajectory and influence investment strategies across asset classes.
Analysts expect the core inflation to rise at an annual pace of 3.0 percent, well above the Federal Reserve target of 2 percent.
Following weaker-than-expected July nonfarm payrolls report, the chances of a September Fed rate cut have increased from 80.3 percent on August 1 to 88.9 percent on August 8, according to the CME FedWatch Took.
Fed Vice Chair of Supervision Michelle Bowman supported a more dovish rate path on Saturday, saying she expects three interest-rate cuts this year.
She urged her fellow policymakers to begin cutting at the Fed's next meeting in September to help avoid a further unnecessary erosion in labour market conditions.
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