Gold prices rose on Monday, recovering from recent losses as investors monitored geopolitical developments and awaited key policy signals from the U.S. Federal Reserve’s annual Jackson Hole Economic Symposium scheduled for later this week. Spot gold climbed approximately 0.4 percent to $1,948.60 per ounce, while U.S. gold futures for December delivery were also up 0.4 percent to $1,994.90. The price movement followed a combination of safe-haven interest and expectations surrounding the U.S. central bank’s policy direction.
Traders are closely watching upcoming remarks by Fed Chair Jerome Powell, which are expected to provide clarity on whether the central bank intends to ease interest rates before the end of the year. Current market pricing indicates growing expectations of a rate cut in September, based on recent macroeconomic data. U.S. inflation showed signs of easing in July. The Consumer Price Index increased 3.1 percent year-on-year, compared with 3.3 percent in June.
The core CPI, which excludes food and energy, rose 3.6 percent annually. The data has contributed to speculation that the Federal Reserve may be approaching the end of its monetary tightening cycle. In parallel with monetary policy considerations, geopolitical risk continued to influence market behavior. A recent meeting between U.S. President Donald Trump and Russian President Vladimir Putin concluded without an agreement on a ceasefire in Ukraine.
Global demand for gold rises under pressure
The White House confirmed that further talks are being arranged in Washington, with Ukrainian President Volodymyr Zelenskiy and several European heads of government expected to attend. The meetings are aimed at discussing options to de-escalate the ongoing conflict, which has now entered its fourth year. The war in Ukraine remains a significant driver of market volatility. Recent military activity in the eastern regions of the country has intensified, and no formal peace negotiations are currently underway.
The continuing instability has supported demand for gold and other traditional safe-haven assets. In the broader financial markets, Asian equities posted gains. The Nikkei 225 and the Taiwan Weighted Index both reached new all-time highs on Monday. China’s CSI 300 index also advanced, climbing to levels last seen in October 2024. Gains in regional markets were supported by increased investor confidence that monetary conditions in major economies may begin to ease in the near term.
Safe-haven demand keeps gold afloat
In other segments of the precious metals market, silver rose 0.6 percent to $28.02 per ounce. Platinum was up 0.5 percent to $936.79, while palladium dipped 0.3 percent to $1,113.52. Analysts noted stable trading volumes across metals, with price movements largely tracking developments in bond yields and currency markets ahead of the Federal Reserve’s policy guidance. Central bankers from the United States, Europe, and Asia will gather this week in Jackson Hole, Wyoming.
The symposium, hosted annually by the Federal Reserve Bank of Kansas City, serves as a platform for policymakers to assess global economic conditions and review monetary frameworks. Scheduled remarks from Powell on Friday will be closely watched by market participants for any indication of rate path changes. With the combination of central bank policy uncertainty and ongoing geopolitical conflict, gold remains in focus as investors position cautiously. The week ahead is expected to provide greater visibility into the interest rate outlook and global diplomatic efforts surrounding the conflict in Ukraine. – By Content Syndication Services.