XAU/USD Surges Ahead of Trump-Zelenskyy Meeting
Gold prices (XAU/USD) rallied near $3,360 during the European trading session on Monday. The precious metal strengthened as financial market participants remained cautious ahead of a meeting between US President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and several NATO members at the White House later in the day.
European leaders and US President Trump are expected to discuss concessions proposed by Russian leader Vladimir Putin, during a summit with Trump in Alaska on Friday, to end the war in Ukraine.
A post from Donald Trump on Truth.Social suggested that Ukraine should abandon its ambitions to claim Russian-occupied Crimea and NATO membership.
"President Zelenskyy of Ukraine could end the war with Russia almost instantly, if he wanted, or he could keep fighting. Remember how that war started. Obama won't be recalling Crimea (12 years ago, without a single shot fired!), and Ukraine WILL NOT JOIN NATO. Some things never change!!!," Trump wrote.
Signs of a ceasefire between Russia and Ukraine will reduce the appeal of safe-haven assets like gold.
This week, investors will also focus on the Jackson Hole Symposium, scheduled for August 21-23. Investors will be closely watching comments from Fed Chairman Jerome Powell for fresh clues on the outlook for US interest rates.
At its July monetary policy meeting, Jerome Powell advocated a "wait and see" approach as the impact of tariffs has begun to affect prices. Meanwhile, traders are confident the Fed will cut interest rates at its September policy meeting, according to the CME FedWatch tool. Lower interest rates by the Fed are a good sign for non-yielding assets like gold. (ayu)
Source: Newsmaker.id