Gold is trading in the red as optimism surrounding talks between Ukraine and Russia erases some of the precious metal’s risk premium. On Monday (May 19), U.S. President Donald Trump revealed that the two sides would begin negotiations “immediately,” without the presence of American officials.
This morning, gold is down 0.42%, trading at $3,216.14 per ounce, though it remains near the all-time high of $3,500 reached last month. Since the beginning of the year, the precious metal has gained over 22%, hitting a series of record highs, supported by intensifying geopolitical conflicts and significant economic uncertainty.
“I think we’re nearing a larger correction [in gold prices], especially if geopolitical tensions continue to ease and U.S. bond yields rise further under Trump’s administration policies,” explained Kyle Rodda, market analyst at Capital.com.
Investors are now awaiting clearer economic signals on a day marked by a series of speeches from U.S. Federal Reserve (Fed) members. The central bank has maintained a highly cautious stance in light of the uncertainty introduced by Trump’s tariffs — a stance that is expected to continue through the end of the year.
By the end of 2025, the Fed is expected to implement only two cuts to its benchmark interest rates, with markets anticipating the first in October.
Source: Diário Económico
