Gold prices declined Monday as easing geopolitical concerns shifted investor attention toward important upcoming U.S. inflation figures.
At 04:30 ET (08:30 GMT), Spot Gold dropped 1% to $3,365.26 an ounce, while December Gold Futures slid 2.1% to $3,419.90 per ounce.
Calming tensions ahead of Ukraine peace talks
Gold continued to fall Monday, extending last week’s losses as traders awaited the scheduled August 15 meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska, aimed at ending the war in Ukraine. The expiration of Trump’s deadline for new sanctions against Russia helped reduce safe-haven demand.
“But with Russia demanding that Ukraine cede occupied territory to end the war, it’s difficult to see a quick solution,” ING analysts said in a note. “It’s unlikely that Ukraine will agree to give up its own territory.”
Key U.S. inflation reports loom
Focus is now on U.S. inflation data, with July’s Consumer Price Index (CPI) due Tuesday and the Producer Price Index (PPI) later this week. These figures will be crucial for traders assessing the Federal Reserve’s policy, especially with the market pricing about a 90% chance of a rate cut in September after disappointing employment data earlier in the month.
The U.S.-China tariff truce, which has prevented escalation of import duties, expires on August 12. While investors hope for an extension, uncertainty remains.
Gold import tariff ruling unsettles market
Last week, gold futures surged to a record high above $3,530 per ounce after U.S. Customs and Border Protection ruled that standard 1-kilogram and 100-ounce gold bars would be subject to import tariffs. This caused supply disruptions, with some Swiss refiners halting shipments to the U.S., Reuters reported.
Industry groups cautioned that the tariff could harm global gold trade, especially from Switzerland, the main refining center.
“However, this has now eased, with reports that the White House will clarify the issue with an executive order amid suggestions that gold bar imports won’t face tariffs,” ING added.
Other precious metals retreat
Elsewhere, Platinum Futures declined 0.7% to $1,330.80 per ounce, and Silver Futures fell 1.4% to $37.990 per ounce. Copper contracts also softened, with London Metal Exchange futures down 0.1% to $9,751.50 per ton and U.S. Copper Futures falling 0.5% to $4.4485 per pound.
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