Gold prices recovered their glow today as investors sized up the chances of a peace deal in Ukraine.
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Gold futures were up 0.4% to $3,395 per ounce in early trading and spot gold climbed 0.3% to $3,348 per ounce.
The hike, which has followed a bashing for gold prices in recent days, – see chart below – came as President Trump gets ready to meet with Ukrainian leader Volodymyr Zelenskyy and European leaders to discuss a possible peace breakthrough with Russia.
This, in turn, followed the high-profile summit in Alaska between Trump and Russian leader President Putin. Although a ceasefire in the now three-year long conflict was not achieved, it is understood that peace proposals on the table include Russia ceding control of smalll, currently occupied territories, while Ukraine would forgo larger sections of its eastern regions.
Hopes and Fears
“Gold was on the back foot to start the day, but was able to reverse course with buyers stepping up to around $3,330 as a value play. US treasury yields gave up some of Friday’s gains which also helped to make life easier for the gold price,” KCM Trade chief market analyst Tim Waterer said.
“Hope over fears,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “Gold demand remains strong — showing investors are cautious ahead of Trump’s meeting with Zelenskyy. Material progress could spark further oil weakness, a rally across equities, and softer gold demand. Disappointment would bring oil bulls back, pressure equities ,except defense, and lift gold.”
The gold price, stocks and ETFs have been on quite the tear this year because of global trade and economic uncertainty. This tends to make gold a safe haven in the eyes of investors. An expected interest rate cut in the U.S. next month is also likely to keep gold shining, as has uncertainty over whether the precious metal will become involved in the tariff trade spat between the U.S. and major gold hub Switzerland.
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