Gold rises near two-week lows as market moves are anticipated
Gold prices rose in trading on Monday, registering around 3357 dollars per ounce, after being close to their lowest levels in more than two weeks, in an attempt to compensate for part of the losses witnessed by the precious metal last week. This decline came against the backdrop of a decline in demand for gold as a safe haven, with the easing of geopolitical tensions globally.
Geopolitical developments affecting gold prices
Although the talks that brought together US presidents Donald Trump and Russian Vladimir Putin on Friday failed to make tangible progress towards a ceasefire, Putin agreed to the idea of providing security guarantees to Ukraine by the United States and the European Union as part of any final agreement to end the war.
Trump is scheduled to hold a meeting later in the day with Ukrainian President Volodymyr Zelensky and European leaders to discuss the possibility of a quick settlement.
Trump stressed that he would continue to put pressure on Zelensky to reach a quick solution, following his talks with Putin.
These political developments affect investor sentiment, which is reflected in the movements of gold in world markets.
Fed's trends under the microscope of investors
On the other hand, investors ' attention is turning towards the minutes of the Federal Reserve meeting scheduled for release on Wednesday, which may reveal new hints about the policy of the US central bank, especially after the decision to keep interest rates unchanged. Market expectations currently indicate an 84% probability of a 25 basis point rate cut next September, while expectations for a larger cut (50 basis points) have declined after stronger-than-expected inflation and retail sales data.
The speech of Fed Chairman Jerome Powell at the Jackson Hole seminar this week will also be the focus of wide attention, as market participants are looking for clear signals about the course of US monetary policy over the coming period.
