- US President Donald Trump's meeting with Russia's Vladmir Putin is ebbing away gold price momentum, but there's more at play.
Trade tariffs have contributed substantially to gold price bullishness this year, but that fuel has been burning out fast in recent weeks. The latest is the uncertainty surrounding the status of tariffs on gold bars entering the United States. The yellow metal was down by 1.2% and traded at $3,354 per ounce at the spot market in late session on Monday. Buying appetite was tamed as traders waited for clarification on whether Washington will indeed impose tariffs. Also, geopolitical factors were in play, with the US President Donald Trump set to meet his Russian counterpart, Vladmir Putin.
Multiple news outlets reported last week that the Trump administration planned to impose tariffs on bullion. However, the White House has since termed the news as “misinformation”, falling short of an outright denial. That has left room for speculation that the tariffs are not in the pipeline, putting XAUUSD at a crossroads.
Gold also faces fresh headwinds after Trump said on Friday that he will meet Putin in Alaska on August 15. There is much optimism that the talks could set in motion events leading to an end of the Russia-Ukraine which has ben ongoing at a full-scale since February 2022. That could take away the geopolitical premium on gold price and result in reduced demand for the commodity.
Gold Price Prediction
Gold price pivots at $3,360 and the momentum signals a likely continuation of the downside if action stays below that level. The metal will likely find its initial support at $3,341. However, an extended control by the sellers will break below that level and could go on to test $3,320.
Conversely, action above $3,360 will favour the buyers to take control. That will likely result ion gains to encounter the first resistance $3,376. Breaking above that level will invalidate the downside narrative. Furthermore, the resulting momentum could push the price higher and test $3,395 in extension.
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