Gold prices declined on Monday after reaching their highest level in over eight months, as demand for safe-haven assets diminished following the announcement of a planned summit between U.S. President Joe Biden and Russian President Vladimir Putin regarding the Ukraine crisis. The metal also faced additional pressure from anticipated interest rate hikes by the Federal Reserve.
Spot gold fell 0.3% to $1,891.33 per ounce by 0514 GMT, retreating from a session high of $1,908.02, the highest since June 3. U.S. gold futures decreased 0.3% to $1,894.20.
The White House stated on Sunday that President Biden has tentatively agreed to hold a summit with President Putin concerning the Ukraine crisis after the foreign ministers of both countries meet next week, pending no invasion occurring. Analyst Margaret Yang from Daily FX noted, "Global investors are deeply concerned about a possible conflict between Russia and Ukraine, and the U.S. president repeatedly says that an invasion is possible in the coming days."
Additionally, investors are focused on the Federal Reserve's interest rate hike expected in March, which could impact gold prices. Rising interest rates increase the opportunity cost of holding non-yielding gold.
As for other precious metals, silver fell 0.9% to $23.75 per ounce, platinum rose 0.2% to $1,069.87, while palladium decreased 1.6% to $2,308.23.
