Gold prices climbed 0.4% on Monday to $3,348.28 per ounce, recovering from a two-week low as investors reacted to shifting market dynamics.
The uptick was supported by lower U.S. Treasury yields and a softer dollar, both of which tend to bolster demand for gold as a safe-haven asset. Market attention is also fixed on diplomatic developments: President Trump’s meeting with Ukrainian President Zelenskiy and talks with European leaders about possible negotiations with Russia could influence risk sentiment. Any sign of reduced geopolitical tension may ease some of the recent premium on gold.
At the same time, traders are watching the Federal Reserve’s upcoming Jackson Hole symposium for guidance on the central bank’s policy path. With many economists forecasting at least one interest-rate cut as soon as September, expectations for looser monetary policy have contributed to gold’s appeal, since lower real yields typically make non-yielding assets like gold more attractive.
Overall, the combination of falling bond yields, a weaker dollar and the prospect of future Fed easing helped push gold off its recent lows, though the market remains sensitive to both geopolitical developments and incoming economic data that could reshape rate outlooks.