Gold falls as geopolitical tensions subside
Gold markets witnessed a noticeable decline at the beginning of the week, as prices fell below 3380 dollars per ounce, influenced by the subsiding geopolitical concerns that were supporting the demand for the yellow metal as a safe haven.
Easing of Russian-American tensions
The decline came after US President Donald Trump announced that he had agreed with his Russian counterpart Vladimir Putin to hold a meeting on August 15 in Alaska to discuss ways to end the war in Ukraine.
This announcement gave a glimmer of hope for avoiding the escalation of US sanctions on Russia, which reduced international tensions and strengthened investor confidence in high-risk markets.
Factors that may limit losses
Gold's losses are also expected to remain limited amid continuing trade concerns between the United States and its partners, as well as expectations that the Federal Reserve will cut interest rates next month.
New US tariffs on imports also came into force last week, exacerbating trade tensions and forcing some countries to seek a renegotiation.
Economic data under the microscope
This week, investors are waiting for the release of a series of influential US economic data, which may determine the course of the Federal Reserve's monetary policy.
The most notable of these data are:
The Consumer Price Index (inflation) is due to be released on Tuesday
The producer price index is expected on Thursday
Retail sales are scheduled for release on Friday, which will reveal the strength of consumer spending
The market is also waiting for an explanation from the White House about the customs policy on gold bullion, especially after the announcement by one of the US government agencies last week of the imposition of customs duties on it.
