Gold movements during today's trading
The price of gold remained steady and was trading above the level of 3330 dollars per ounce on Tuesday, as investors assessed the US diplomatic efforts to end the war in Ukraine and watched for possible signals from the annual Jackson Hole symposium organized by the US Federal Reserve.
The easing of tensions limits the demand for gold as a safe haven
Recent geopolitical developments have affected gold's movement, as safe-haven purchases declined after former US President Donald Trump expressed cautious optimism about the prospects for peace in Ukraine.
After his meeting with Ukrainian President Zelensky and European leaders, Trump said that he had spoken with Russian President Vladimir Putin, and is working to arrange a direct meeting between the two leaders, followed by a trilateral summit that will bring them together.
Although these statements raised hopes for a possible peace agreement, investors ' skepticism about the possibility of achieving tangible progress in the near future prevented significant fluctuations in gold prices.
Eyes turn to Jerome Powell and interest rate forecasts
On the other hand, traders are focusing on the speech of Fed Chairman Jerome Powell scheduled during the Jackson Hole seminar in Wyoming, as the market is looking for clues about the course of US monetary policy, especially regarding when interest rate cuts will resume.
Forecasts indicate that Powell may pave the way for the next September cuts, which may affect gold's movements, as the yellow metal tends to rise in a low interest rate environment.
What factors influence the movements of gold
Gold remains under the influence of two main factors:
- Geopolitical developments, especially the talks on Ukraine.
- The directions of the monetary policy of the Federal Reserve, which may determine the price direction in the near term.
