Gold Prices Rebound Ahead of Jackson Hole and Trump-Zelensky Meeting
Gold prices rose in Asian trade on Monday, bouncing back from a two-week low. Demand for safe-haven assets remained strong as uncertainty continued over the Russia-Ukraine war.
Investors were also cautious before the Jackson Hole symposium, where markets expect more guidance from the Federal Reserve on future rate cuts.
Spot and Futures Prices
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Spot gold climbed 0.7% to $3,357.73 an ounce.
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Gold futures for October gained 0.6% to $3,402.92 an ounce by 01:00 ET (05:00 GMT).
The recovery comes after gold fell to a two-week low last week, following talks between President Donald Trump and Russian President Vladimir Putin on a potential peace deal.
Trump to Meet Zelensky and European Leaders
Later on Monday, Trump will meet Ukrainian President Volodymyr Zelensky and European leaders at the White House. Reports suggest Trump may push Ukraine to cede territory, including Crimea, and abandon its bid to join NATO to reach an agreement with Russia.
Kyiv has consistently rejected these proposals. Markets remain cautious about the outcome, keeping gold and safe havens in demand, even as Asian stock markets rose on hopes a peace deal could reduce risks to Russian oil trade.
Trump’s previous White House meeting with Zelensky in February ended in a heated argument without results.
Precious and Industrial Metals
Other precious metals also advanced on Monday:
- Platinum futures rose slightly to $1,345.45/oz.
- Silver futures gained 0.5% to $38.18/oz.
In industrial metals:
- London Metal Exchange (LME) copper edged up 0.1% to $9,799.75 a ton.
- COMEX copper futures slipped 0.1% to $4.4895 a pound.
Copper prices weakened late last week after disappointing Chinese industrial production and investment data, raising concerns about demand in the world’s largest copper importer.
Focus on Jackson Hole and Fed Rate Outlook
Weakness in the U.S. dollar also supported gold prices. Markets are betting the Fed will cut interest rates in September, though expectations have eased.
According to CME FedWatch, traders now see an 83% chance of a 25-basis-point cut, down from nearly 100% last week.
The softer outlook follows hotter-than-expected producer inflation data, which fueled concerns over the inflationary impact of Trump’s tariffs.
Still, the dollar stayed rangebound on Monday after last week’s decline, offering further support to gold and precious metals.
