Gold prices experienced a surge, recovering from a two-week low to reach approximately $3,340 per ounce on Monday. This upward movement is attributed to investor anticipation surrounding upcoming geopolitical events and economic signals. The market is closely watching the meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy, as well as remarks from Federal Reserve Chair Jerome Powell and the release of the Fed’s latest meeting minutes. Growing expectations of a September interest-rate cut are also influencing market sentiment.
- Gold prices rose to around $3,340 per ounce.
- Prices earlier hit a more than two-week low.
- Investors are awaiting the Trump-Zelenskiy meeting focused on a potential peace deal with Russia.
- Zelenskiy will be joined by key European leaders.
- A previous Trump-Putin summit failed to produce a ceasefire breakthrough.
- Putin agreed to allow the US and Europe to provide Ukraine with security guarantees.
- Markets are closely monitoring Jerome Powell’s remarks at the Jackson Hole Symposium.
- Markets are also watching the minutes from the Fed’s latest meeting.
- There are growing expectations for a September interest-rate cut.
This movement suggests that gold is currently reacting to a confluence of factors. Geopolitical events, such as discussions regarding the Russia-Ukraine conflict, appear to be creating uncertainty that is boosting gold’s safe-haven appeal. Furthermore, economic policy considerations, particularly those related to interest rates, are adding further incentive to hold gold. The expectation of lower interest rates may increase gold’s attractiveness as an investment.