Gold prices fell on Monday, as signs of de-escalation in the Ukraine conflict weighed on safe-haven demand.
The decline followed President Donald Trump’s announcement that he would meet Russian President Vladimir Putin in Alaska on August 15 to negotiate a possible end to the war, a move that could avert further US sanctions on Moscow.
The shift in geopolitical tone pressured the metal, though downside momentum may be tempered by persistent trade uncertainty and expectations for Federal Reserve easing later this year.
Tariff hikes on multiple countries remain in focus, alongside ongoing US-China trade talks ahead of the August 12 deadline. The physical gold market also faces potential disruption after reports that bullion bars may be subject to country-specific import duties, although the market is awaiting clarifications from the White House.
From a monetary policy perspective, attention is turning to key US economic data this week, including CPI, PPI, and retail sales. A stronger-than-expected CPI print could bolster the dollar and add near-term pressure to gold. However, markets still price a near 90% probability of a Fed rate cut in September, with a total of three potential rate cuts expected by year-end.
