Gold prices declined slightly as risk appetite continued to improve. Overall, gold continued to trade sideways within the same range for almost three months, but could remain exposed to any changes in expectations.
The metal was under some pressure as investors priced in the potential for decreased geopolitical risks ahead of the meeting between Presidents Trump and Putin.
The meeting would see the two leaders discuss a potential peace agreement. A cease-fire could weigh on gold, while a failure to make any progress could drive investors toward the safe-haven asset as tensions could flare up.
However, gold could continue to see support from the expectations of lower interest rates. Markets anticipate three rate cuts this year and additional cuts in 2026.
Lower interest rates could increase the appeal of gold. In this regard, investors could continue to monitor any new data releases to gauge the impact of the Federal Reserve’s decisions, including jobless claims and PPI data.
