Spot gold declines on Ukraine peace talks, fed policy outlook

August 11, 2025 (MLN): Spot gold was down 1.04% at $3362.09 an ounce as of [3:25 pm] PST on Monday, according to data reported by Mettis Global.

Gold prices fell as investors turned their attention to upcoming U.S.-Russia discussions on the Ukraine conflict and awaited July inflation figures for clues on the Federal Reserve’s future interest rate policy.

 U.S. gold futures for December delivery slid 1.4% to $3,441.20 on Monday.

City Index senior analyst Matt Simpson attributed the decline to easing geopolitical tensions over the Ukraine conflict noting that prices extended losses after Friday’s news that former President Donald Trump plans to meet Russian President Vladimir Putin in the U.S.

Simpson said the two leaders are scheduled to hold talks in Alaska on August 15 aimed at ending the war.

Investor attention is also fixed on U.S. consumer price figures set for release on Tuesday.

Analysts anticipate that the effect of tariffs will push the core inflation rate up by 0.3% to an annual pace of 3.0%, moving it further from the Federal Reserve’s 2% target.

Simpson cautioned that a stronger than expected reading could lift the dollar and limit gold’s upside although he believes bargain hunting may keep a floor under prices.

Expectations for a September Fed rate cut have grown following a softer than forecast U.S. jobs report with markets pricing in roughly a 90% chance of easing next month and at least one more cut before year end.

Lower interest rates typically benefit non-yielding assets such as gold.

Markets are also watching developments in Sino-U.S. trade talks ahead of Trump’s August 12 deadline for an agreement between Washington and Beijing.

Meanwhile data from the Commodity Futures Trading Commission showed COMEX gold speculators boosted their net long positions by 18,965 contracts to 161,811 in the week ending August 5.

In other precious metals, spot silver dipped 0.5% to $38.13 per ounce, platinum fell 1.1% to $1,317.90, and palladium edged up 0.1% to $1,127.37.

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