World gold prices in the previous trading session on Monday narrowed their gains, as positive signals from US-Ukraine negotiations to end the conflict with Russia weakened safe-haven demand. The market is also waiting for a series of important US employment data to determine the Fed's next policy direction.
As of this morning's trading session, spot gold prices increased slightly by 0.2%, to 4,309.82 USD/ounce, after reaching a time of increase of more than 1% in the session. US gold futures closed a session up 0.2%, at $4,335.2/ounce.
According to Jim Wyckoff, senior analyst at Kitco Metals, advances in Russia-Ukraine peace negotiations are reducing the safe-haven appeal of gold.
The market has also been under pressure from profit-taking and selling activities for the past week, as a segment of investors who had previously bought gold have begun to realize profits, Wyckoff said.
Notably, US Special Envoy Steve Witkoff confirmed that there has been a lot of progress in negotiations on Ukraine, while a US official told Reuters that the two sides have significantly narrowed disagreements regarding the Russia-Ukraine conflict.
Investors are now focusing on the US non-farm payrolls report and retail data, due out on Tuesday, to find further clues on the Fed's monetary policy path. According to CME FedWatch tool, the market is pricing in a 78% chance of a Fed rate cut in January 2026.
Gold is considered a safe haven asset, often benefiting in the context of geopolitical and economic instability. However, as geopolitical risks show signs of cooling down, short-term cash flow tends to temporarily leave gold to seek opportunities in other assets.
In contrast to gold, silver prices increased sharply by 2.6%, to 63.61 USD/ounce, after setting a record of 64.65 USD/ounce on Friday and are approaching the psychological mark of 65 USD/ounce.
Mr. Bob Haberkorn - senior strategist at RJO Futures - commented: "Siliver is leading the precious metal group. By the end of the year, prices could exceed $65/ounce, even excluding the possibility of reaching $70/ounce in the first quarter of next year."
In other metals, platinum rose 2.5% to $1,788.55 an ounce, the highest level since September 2011. Palladium even broke out more strongly, increasing nearly 5% to 1,560.25 USD/ounce, reaching a two-month peak.
According to Nornickel - the world's largest Russian palladium producer, if including investment demand, the global palladium market could face a shortage of about 0.2 million ounces this year, continuing to support the metal price.
