WASHINGTON (dpa-AFX) - Gold prices dipped on Monday, with increasing geopolitical tension surrounding the Russia-Ukraine peace talks causing investors to stay cautious combined with prevailing uncertainty over interest rate cuts.
Front Month Comex Gold for August delivery edged down by $4.30 (or 0.13%) to $3,331.70 per troy ounce.
Front Month Comex Silver for August delivery rose by 5.70 cents (or 0.15%) to $37.951 per troy ounce today.
To end the three-plus-year long Russian war with Ukraine, US President Donald Trump previously threatened Russia with sanctions if it does not agree to a ceasefire along with 'penalty sanctions' on countries buying Russian oil, notably India and China.
Trump had a meeting with Russian President Vladimir Putin last Friday in Alaska.
Reversing his earlier stance after the meeting, Trump recommended Ukraine agree to concede the Donbas region to Russia for a ceasefire and to gain US assurance of security. Trump also put off his plans to sanction nations buying oil from Russia.
Left with this hard choice, Ukraine's President Volodymyr Zelenskyy is set for a meeting with Trump today at the White House.
Market players focused their attention to the outcome of the meeting as EU leaders are in support of Zelenskyy to show their solidarity with Ukraine. They fear that a freehand to Putin could endanger their sovereignty as well.
Investors await the upcoming Jackson Hole economic symposium, where Fed Chair Jerome Powell will share critical inputs that serve as clues on the direction of the US central bank's decision on interest rates.
Progress in the crucial Trump-Zelenskyy meeting could soften the demand for gold. However, a negative or uncertain outcome could be bullish for gold as well as oil.
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