Gold pares gains as Ukraine peace talks progress, eyes on US jobs data
Spot gold pared earlier gains on Monday following progress in critical talks between U.S. officials and Ukrainian President Volodymyr Zelenskiy aimed at ending the war, while traders awaited key U.S. jobs data.
Spot gold was up 0.2% at $4,309.82 an ounce by 01:55 p.m. ET (18:55 GMT), after rising more than 1% earlier in the session. U.S. gold futures settled 0.2% higher at $4,335.2 an ounce.
Progress in Russia-Ukraine peace talks appears to be dampening safe-haven demand for gold, said senior analyst at Kitco Metals Jim Wyckoff.
He added that gold is also under pressure from profit-taking and week-long liquidation, as some traders who bought futures earlier are now selling.
U.S. special envoy Steve Witkoff said "a lot of progress was made in Ukraine talks," while a U.S. official told Reuters that the two sides have moved closer to narrowing differences between Russia and Ukraine.
Traders now await the U.S. non-farm payrolls report and retail data, scheduled for release on Tuesday, for further cues on the Federal Reserve's policy path. Markets are currently pricing in a 78% chance of a rate cut in January 2026, according to CME FedWatch Tool.
Gold, traditionally viewed as a safe-haven asset, tends to perform well during periods of geopolitical and economic uncertainty.
Spot silver rose 2.6% to $63.61, after reaching a record-high of $64.65 on Friday, staying within striking distance of the unprecedented $65/oz milestone.
"Silver is leading the pack when it comes to precious metals. By year-end, we'll be trading north of $65 and I could see $70 in the early part of quarter one next year," said RJO Futures senior market strategist Bob Haberkorn.
Meanwhile, spot platinum added 2.5% to $1,788.55, hitting its highest level since September 2011, while palladium rose to a two-month high, adding nearly 5% to $1,560.25 per ounce.
Russia's Nornickel, the world's largest palladium producer, said in a metals market review that including investment demand, the palladium market could see a deficit of 0.2 million ounces this year.
Source: Reuters.com
