Gold prices slipped on Monday after witnessing two-way price moves amid planned diplomatic talks between the US and Russian over Ukraine issue.
As of 1340 hours GMT, gold in the international market was available at $1,894.30 per ounce, shedding $4.90. Out of a $4.90 per ounce decrease, +$1.85 was due to the dollar’s weakness and -$6.75 was due to predominant sellers. The price of 10 grams of 24-carat yellow metal in Pakistan, meanwhile, decreased to Rs107,400.
The gold price surged to an eight-month high on Thursday as prices remain at the mercy of the geopolitical developments concerning the Russia-Ukraine crisis. News that US President Joe Biden and his Russian counterpart Vladimir Putin have agreed in principle to hold a summit on the Ukraine crisis raised hopes for a diplomatic solution to the standoff. This, in turn, lifted the global risk sentiment and tempered demand for traditional safe-haven assets. This was seen as a key factor behind the commodity’s intraday pullback from the $1,908 region, or the highest level since June 11.
The early optimistic move in the markets, however, faded rather quickly after a Kremlin spokesperson said that there were no concrete plans yet for a Putin-Biden meeting. Apart from this, the market fears about an imminent Russian invasion of Ukraine assisted gold to attract some dip-buying near the $1,888-$1,887 region.