Gold prices rise from 2-week low.
Gold prices rose in Asian trade on Monday, recovering from an over two-week low as safe havens remained in vogue amid dialogue over the Russia-Ukraine war.
Uncertainty before the Jackson Hole central bank symposium this week also favored gold and weighed on the dollar, as markets maintained bets that the Federal Reserve will cut interest rates in September.
Spot gold rose 0.7% to $3,357.73 an ounce, while gold futures for October rose 0.6% to $3.402.92/oz by 01:00 ET (05:00 GMT). The yellow metal had fallen to an over two-week low last week as U.S. President Donald Trump met Russian President Vladimir Putin and discussed a potential peace agreement with Ukraine.
Trump to meet Zelensky, Europe leaders on Monday
Trump is now set to meet Ukrainian President Volodymyr Zelensky and top European leaders at the White House later on Monday.
Reports suggested that Trump will demand Ukraine cede some territory to Russia to achieve a peace deal– a notion that Kyiv has repeatedly rejected.
Trump also said on Sunday evening that Ukraine will have to cede Crimea and drop its bid to join the North Atlantic Treaty Organization (NATO) to reach a deal with Russia.
Dollar braces for busy week.
The dollar steadied on Monday ahead of a key meeting between U.S. President Donald Trump and his Ukrainian counterpart Volodymyr Zelenskiy, while investors also looked ahead to the Federal Reserve’s Jackson Hole symposium for more policy clues.
Currency moves were largely subdued in the Asia session, though the dollar halted its fall from last week as traders further pared bets on a jumbo Fed cut next month.
The euro was little changed at $1.1704, while sterling edged up 0.1% to $1.3563.
Against a basket of currencies, the dollar stabilised at 97.85, after losing 0.4% last week.
Markets are now pricing in an 84% chance the Fed would ease rates by a quarter point next month, down from 98% last week, after a raft of data including a jump in U.S. wholesale prices last month and a solid increase in July’s retail sales figures dimmed the prospect of an oversized 50-basis-point cut.
Asia stocks encouraged by US-Russia talks.
Most Asia stocks rose on Monday as risk appetite was supported by some signs of progress in U.S.-Russia dialogue over a Ukraine ceasefire, with Japanese shares at record highs.
Chinese and Indian markets outperformed amid hopes that a swift resolution to the Russia-Ukraine conflict will help remove U.S. scrutiny of New Delhi and Beijing’s purchases of Russian oil.
Gains in Asian markets came as U.S. stock index futures advanced in regional trade, with S&P 500 Futures up 0.2%. Most regional markets were also sitting on gains from the prior week, amid increasing bets that the Federal Reserve will cut interest rates in September.
Chinese, Indian stocks surge on Russia-Ukraine hopes
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rallied 1.5% and 1.2%, respectively. The SSEC hit a nine-year high, while the CSI300 was at its highest since October 2024.
Hong Kong’s Hang Seng index lagged, rising 0.6% as losses in property and technology stocks lagged.
India’s Nifty 50 index surged 1.5% in morning trade, hitting a three-week high.
Chinese and Indian markets were boosted by hopes that the U.S. will not disrupt their buying of Russian oil, especially if a peace deal is reached between Moscow and Kyiv.
Trump met his Russian counterpart Vladimir Putin on Friday and flagged positive, albeit vague developments from the meeting. Trump is now set to meet a host of European leaders, and Ukrainian President Volodymyr Zelensky on Monday.
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