Gold prices climbed on Monday morning, recovering from a two-week low as investors turned their attention to high-stakes talks between US president Donald Trump, his Ukrainian counterpart Volodymyr Zelensky and European leaders, amid tentative signs of a possible peace breakthrough with Russia.
At the time of writing, gold futures rose 0.4% to $3,395.50 per ounce and spot gold climbed 0.6% to $3,356.05 per ounce, after hitting its lowest level since 1 August.
“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.
Peace proposals on the table include Russia ceding control of small, currently occupied territories, while Ukraine would forgo larger sections of its eastern regions that Russia has so far failed to seize. The proposals were reportedly discussed between Trump and Russian president Vladimir Putin during their summit in Alaska.
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“Hope over fears,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
She added: “Gold demand remains strong — showing investors are cautious ahead of Trump’s meeting with Zelensky. 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.”
Oil prices were little changed on Monday morning, following earlier declines, as markets digested the outcome of last week's high-profile meeting between Trump and Putin.
Brent (BZ=F) crude futures rose 0.1% to trade at $65.93 per barrel, at the time of writing, while West Texas Intermediate (CL=F) futures climbed 0.3% to $62.97 a barrel.
“With less talk of tougher sanctions on Russia, oil prices dropped back as supply concerns faded, but amid the ongoing uncertainty Brent Crude has begun creeping higher and has headed back above $66 a barrel,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Trump and Putin met in Alaska on Friday, where the US president signalled a preference for pursuing a peace deal in Ukraine rather than insisting on a ceasefire first. Trump also made it clear that he would not immediately impose retaliatory tariffs on countries importing Russian oil, including China, a move that helped ease fears of potential supply disruptions. However, he cautioned that such measures could be considered in “two or three weeks”.
