Gold steadies after touching one-week low as markets eye Trump-Zelensky meeting

[BENGALURU] Gold held steady on Monday (Aug 18) after hitting a one-week low, with attention turning to US President Donald Trump’s meeting with Ukrainian President Volodymyr Zelensky and European leaders to discuss a peace deal with Russia.

Spot gold was up 0.1 per cent at US$3,340.71 per ounce, as at 8.40 am, after hitting its lowest level since Aug 1.

US gold futures for December delivery rose 0.1 per cent to US$3,385.70.

European leaders are set to join Zelensky on Monday for discussions with Trump.

Russia would relinquish tiny pockets of occupied Ukraine and Kyiv would cede swathes of its eastern land which Moscow has been unable to capture, under peace proposals discussed by Russia’s Vladimir Putin and Trump at their Alaska summit, sources briefed on Moscow’s thinking said.

Benchmark 10-year US Treasury yields hovered at near two-week high level, while US dollar index inched lower, making gold less expensive for overseas buyers.

Investors are also looking ahead to the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, for insights into interest rate cuts paths.

Last week, consumer and wholesale price data appeared to send mixed signals regarding the economic impact of Trump’s import tariffs.

Economists polled by Reuters largely expect the Fed to announce a rate cut in September, its first this year, with a possible second cut by the year-end as concerns mount over the US economy.

Non-yielding bullion, considered a safe-haven assets during periods of uncertainity, tends to perform well in low-interest-rate environment.

Meanwhile, a planned visit by US trade negotiators to New Delhi from Aug 25 to 29 has been called off, a source said.

Elsewhere, spot silver rose 0.2 per cent to US$38.07 per ounce, platinum gained 0.3 per cent to US$1,339.30 and palladium was up 0.8 per cent to US$1,121. REUTERS