Gold Declines as Investors Focus on U.S.-Russia Talks and Inflation Data
Gold prices fell on Monday as investors turned their attention to upcoming U.S.-Russia discussions on the war in Ukraine, alongside anticipation for July U.S. inflation data, which could provide a clearer outlook on the Federal Reserve’s interest rate path.
Spot gold dropped 0.6% to $3,378.49 per ounce as of 05:21 GMT, after touching its highest level since July 23 on Friday. U.S. gold futures for December delivery fell 1.4% to $3,441.20.
Global markets drew some relief from easing geopolitical tensions following the announcement of a meeting between U.S. President Donald Trump and Russian President Vladimir Putin, set for August 15 in Alaska, aimed at negotiating an end to the war in Ukraine.
At the same time, focus is shifting to U.S. consumer price data due Tuesday. Forecasts point to a 0.3% rise in core inflation, bringing the annual rate to 3.0%, moving further away from the Fed’s 2% target. Such a result could strengthen the case for keeping interest rates elevated, potentially weighing on gold prices.
Weaker-than-expected U.S. jobs data has reinforced market bets on a September rate cut, with traders pricing in nearly a 90% probability, along with expectations for at least one additional cut before year-end. Gold, as a non-yielding asset, tends to benefit from a lower interest rate environment.
Trade negotiations between the United States and China also remain in the spotlight, as the August 12 deadline set by President Trump for reaching a deal with Beijing approaches.
In other precious metals, spot silver slipped 0.5% to $38.13 per ounce, platinum fell 1.1% to $1,317.90, while palladium edged up 0.1% to $1,127.37. Meanwhile, gold speculators on the COMEX exchange increased their net long positions by 18,965 contracts to a total of 161,811 in the week ending August 5.
