By Ishaan Arora and Anmol Choubey
(Reuters) – Gold prices eked out gains on Monday, helped by lower U.S. Treasury yields, while market players awaited U.S. President Donald Trump’s meeting with Ukrainian President Volodymyr Zelenskiy and European leaders later in the day.
Spot gold was 0.4% higher at $3,347.57 per ounce at 1214 GMT, after hitting its lowest level since August 1 earlier in the session. U.S. gold futures for December delivery rose 0.3% to $3,393.70.
“The firm tone to gold prices has returned today with the market nudging the $3,350 level (as) the combination of soft yields and a weaker dollar would for sure create a tailwind for gold,” said independent analyst Ross Norman.
Benchmark 10-year U.S. Treasury yields fell from more than two-week highs. [US/]
European leaders are set to join Zelenskiy for talks with Trump later on Monday on ways to end the war between Russia and Ukraine.
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 on Friday, sources briefed on Moscow’s thinking said.
“Front-running the geopolitical news would be unwise just now given that almost any outcome is conceivable. If there was a sense that tensions over Ukraine were easing, then we might expect some modest softness in gold prices,” Norman added.
Investors are also looking ahead to the Federal Reserve’s annual symposium in Jackson Hole, Wyoming for more cues on the path of U.S. interest rates.
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 year-end.
Non-yielding bullion, considered a safe-haven asset during periods of geopolitical and economic uncertainty, tends to perform well in a low-interest-rate environment.
Elsewhere, spot silver was up 0.3% at $38.10 per ounce, while platinum fell 0.5% to $1,329.09, after hitting its lowest in nearly a week earlier in the session.
Spot palladium gained 0.8% to $1,121.06. It fell to its lowest level since July 10 earlier in the session.
(Reporting by Ishaan Arora and Anmol Choubey in Bengaluru; editing by Mark Heinrich, Emelia Sithole-Matarise and Christina Fincher)
