Gold prices increased in the trading session on August 18, supported by falling US Treasury yields, while investors focused on the meeting between US President Donald Trump, Ukrainian President Volodymyr Zelensky and European leaders taking place on the day.
At 8:40 GMT (ie 15:40 Vietnam time), spot gold prices increased by 0.4% to 3,348.28 USD/ounce, after reaching the lowest level since August 1. The price of US gold futures for December delivery also increased by 0.3% to 3,393.4 USD/ounce.
Ross Norman - an independent analyst - commented: "Gold prices have regained a positive note today as they approached the $3,350/ounce mark. The combination of falling bond yields and a weaker US dollar is certainly creating a buffer for gold.
The yield on the 10-year US Treasury note has fallen from its highest level in more than two weeks.
On geopolitics, European leaders will join Mr Trump and Mr Zelensky in discussions to find a path for a peace deal in Ukraine.
Although it has not been determined, information appeared in the media, the proposal discussed at the Alaska summit between Mr. Vladimir Putin and Mr. Donald Trump last weekend could include Russia giving up some small areas it is occupying, while Ukraine must cede land in the East that Moscow has not controlled.
At this time, it is not advisable to receive geopolitical news first because the results can go in any direction. If there is a signal of Ukraine's tension cooling down, gold could be under slight downward pressure, Norman added.
In addition, investors are also waiting for the US Federal Reserve's (FED) Annual Meeting in Jackson Hole, Wyoming, to find more clues on interest rate policy.
Currently, the majority of experts predict the Fed will cut interest rates in September, the first time this year and may continue to cut again at the end of the year.
Gold - a non-yielding asset is often benefited in a low interest rate environment, especially when geopolitical and economic instability increases.
In other metals, spot silver rose 0.2% to $18.08 an ounce, platinum moved sideways at $1,335.06/ounce, while gold rose 0.6% to $1,118.92/ounce.
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