Gold Stays Flat as Investors Eye Fed Minutes and Ceasefire
The yellow metal stayed within range as metal traders await the meeting between Trump, Zelensky, and European leaders in Washington
Quick overview
- Gold prices remain stable around $3,330 as traders await key geopolitical meetings.
- The metal fluctuated between $3,320 and $3,360 while anticipating the Federal Reserve's upcoming announcements.
- Despite reduced expectations for a significant rate cut, many still believe the Fed will lower rates in September.
- Geopolitical developments, particularly regarding Ukraine and Russia, are influencing market sentiment.
The yellow metal stayed within range as metal traders await the meeting between Trump, Zelensky, and European leaders in Washington after the summit between US President Donald Trump and Russian President Vladimir Putin last week
The Bullion is currently trading at around $3,330, and remains essentially unchanged due to growing rumors of a ceasefire and a potential peace agreement.
The precious metal ranged between $3,320 and $3,360 throughout the day as market participants prepared for the release of the minutes from the Federal Reserve’s (Fed) most recent meeting and Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday.
Although traders priced out a 50-basis-point chance that surfaced after the US Consumer Price Index (CPI) report, expectations that the Fed will lower rates in September remain high. Investors, who had also wagered that the central bank might lower rates at the September meeting, were alarmed by the July Producer Price Index (PPI).
In addition to this, geopolitics would play a role as market participants are optimistic that a possible ceasefire between Ukraine and Russia will be reached after Trump met Putin in Alaska on Friday.
US President Donald Trump and Ukrainian President Volodymyr Zelensky are meeting at the White House. Trump has so far welcomed Zelensky, saying that it is an honor to have him there, and Zelensky thanked Trump for his efforts to reach a deal that would end the war in Ukraine. However, Trump recently said that he does not think there will be a ceasefire.
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