Gold prices edge lower; heading for weekly losses ahead of U.S.-Russia talks

Investing.com -- Gold prices edged slightly lower Thursday, heading for weekly losses ahead of U.S.-Russia peace talks later this week.

At 08:05 ET (12:05 GMT), Spot Gold edged marginally lower to $3,355.72 an ounce and Gold Futures for December dropped 0.1% to $3,404.40/oz.

Gold prices are on course for losses of over 1% this week, hit by a sharp decline at the start of the week after U.S. President Donald Trump said gold bars would not face tariffs.

Trump-Putin talks eyed

Traders are closely watching Friday’s summit between President Donald Trump and Russian President Vladimir Putin in Anchorage to discuss efforts to end the war in Ukraine

Russia said on Wednesday that its stance on ending the war in Ukraine has not changed since President Vladimir Putin set out his conditions last year: the full withdrawal of Kyiv’s forces from key Ukrainian regions and the abandonment of its NATO ambitions.

Russia currently controls 19% of Ukraine including all of Crimea, all of Luhansk, more than 70% of the Donetsk, Zaporizhzhia and Kherson regions, and slivers of the Kharkiv, Sumy, Mykolaiv and Dnipropetrovsk regions.

Trump has warned of “severe consequences” for Russia if Vladimir Putin blocked progress toward peace in Ukraine.

A constructive outcome could reduce demand for gold as a safe-haven asset, although any signs of failed negotiations or heightened tensions could boost bullion prices.

U.S. PPI, jobless claims eyed

Traders are also waiting for more important economic data, namely producer prices for final demand and weekly jobless claims, as Feder Reserve policymakers try to assess whether tariff-driven price increases are filtering through the economy.

Recent mild data has strengthened the case for the Fed to cut its benchmark interest rate at its September meeting, with markets now pricing in a 95% probability of a reduction next month.

Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, making bullion more attractive to investors. 

Other metal markets remain subdued

Other precious metals were also subdued on Thursday.

Platinum Futures gained 1.8% to $1,366.60/oz, while Silver Futures edged 0.6% lower to $38.368/oz.

Benchmark Copper Futures on the London Metal Exchange were down 0.6% to $9,746.10 a ton, and U.S. Copper Futures also traded 0.4% lower to $4.795 a pound.

Ayushman Ojha contributed to this article