Gold prices fell on Monday as investors awaited upcoming U.S. inflation data, amid easing geopolitical tensions. Spot gold dropped 1% to $3,365.26 per ounce, while December gold futures declined 2.1% to $3,419.90 per ounce.
The decline in gold prices comes alongside a relative easing of global tensions, particularly with an anticipated meeting between U.S. President Donald Trump and Russian President Vladimir Putin scheduled to take place in Alaska on August 15, in an effort to reach an agreement to end the war in Ukraine. The deadline set by Trump for achieving a peace deal passed without Washington imposing new sanctions on Moscow, which helped ease concerns and prompted investors to move away from safe haven assets like gold.
However, analysts believe that a swift resolution remains unlikely, as Russia insists that Ukraine relinquish the territories it currently occupies an outcome Kyiv is expected to reject.
Meanwhile, markets are focusing on the release of U.S. inflation indicators, with July’s Consumer Price Index (CPI) data due on Tuesday, followed later in the week by the Producer Price Index (PPI). Investors are closely watching these reports to assess the potential trajectory of the Federal Reserve’s monetary policy, especially with markets currently pricing in nearly a 90% chance of an interest rate cut in September, following a weak jobs report earlier this month.
In another development, uncertainty remains over the fate of the trade truce between the United States and China, which has so far prevented further tariff escalations and is set to expire on August 12. While optimism exists over a possible extension, the outcome is still unclear.
Last week, gold prices surged to a record high above $3,530 per ounce after the U.S. Customs and Border Protection agency announced tariffs on imports of standard gold bars weighing 1 kg and 100 ounces. This decision disrupted global bullion flows, prompting some Swiss refineries to suspend shipments to the U.S., according to a Reuters report.
Industry sources warned that the move could harm global gold trade, particularly from Switzerland, a major refining hub. However, tensions eased later after reports suggested that the White House plans to issue an executive order clarifying the matter, with indications that imports of gold bars may not be subject to tariffs.
In other precious metals markets, platinum futures fell 0.7% to $1,330.80 per ounce, while silver futures declined 1.4% to $37.990 per ounce.
Stay informed about global markets through our previous analyses. and Now, you can also benefit from LDN company services via the LDN Global Markets trading platform.
