Global gold prices began to decline after recently reaching a two-week high. This trend is linked to reports of preparations for negotiations between Russia and Ukraine regarding the cessation of hostilities, which immediately affected investor sentiment.
This is reported by Finway
Dynamics of Spot and Futures Gold Prices
As of August 9, spot gold prices — that is, in the market for immediate delivery — fell by 1% to $3363.31 per ounce (approximately $108.14 per gram). This occurred after prices reached their highest level since July 23 on August 8.
Additionally, futures contracts for American gold for December delivery decreased by 2%, settling at $3423.10 per ounce (about $110 per gram).
Reasons and Forecasts for Further Changes
“The reduction in geopolitical tension surrounding the war in Ukraine has led to a further decline in the value of gold, following U.S. President Donald Trump’s announcement of a meeting with Vladimir Putin on American soil,” noted City Index senior analyst Matt Simpson.
At the same time, Reuters analyst Wan Tao predicts that the price of spot gold may continue to decline, remaining in the near term within the range of $3314-3342 per ounce ($106-107 per gram).
Expectations from Upcoming Negotiations
U.S. President Donald Trump announced that the meeting with Vladimir Putin will take place on August 15 in Alaska. It is also possible that Ukrainian President Volodymyr Zelensky will join the summit, although there is currently no official confirmation of this information.
Before the meeting between Trump and Putin, leaders of European countries intend to hold their own negotiations with the American president, which may further influence the situation in the precious metals market.