Progress in peace talks on Ukraine impacts global gold prices
Photo: ahead of the talks between the US and Ukraine, gold prices jumped 1% (National Bank of Ukraine)
On Monday, December 15, the spot price of gold trimmed earlier gains amid progress in talks between US officials and Ukrainian President Volodymyr Zelenskyy, Reuters informs.
Spot gold rose 0.2% to $4,309.82 per ounce (31.1 grams) after earlier gaining more than 1% during the session. US gold futures closed up 0.2% at $4,335.20 per ounce.
"Progress in Russia-Ukraine peace talks appears to be dampening safe-haven demand for gold," said Jim Wyckoff, senior analyst at Kitco Metals.
He added that gold is under pressure from profit-taking and weekly liquidation, as some traders who had previously bought futures are now selling them.
Gold, traditionally considered a safe-haven asset, typically performs well during periods of geopolitical and economic instability.
Global gold prices stabilized after three days of gains, driven by expectations of further monetary easing in the US. Experts note that gold prices have risen more than 60% this year.
The sharp increase was supported by central bank purchases and investors moving away from sovereign bonds and currencies.
Earlier, it was reported that global gold prices reached a six-week high, while silver prices hit a record high amid expectations of a US interest rate cut.
It is also noted that Russia has begun large-scale sales of its gold reserves to patch its budget and support the ruble, indicating a rapid depletion of its strategic stockpiles.
