Gold prices slipped on Monday as market participants focussed on U.S.-Russia talks on the war in Ukraine, and July inflation data that could offer more insight into the Federal Reserve's interest rate outlook.

Spot gold was down 0.6% at $3,378.49 per ounce, as of 0521 GMT, after hitting its highest since July 23 on Friday.

U.S. gold futures for December delivery dropped 1.4% to $3,441.20.

"Cooling geopolitical tensions surrounding the war in Ukraine saw gold fall further, following Friday's announcement that President Donald Trump will meet with Vladimir Putin on the U.S. soil," City Index senior analyst Matt Simpson said.

Trump said on Friday he will meet Russian President Putin on August 15 in Alaska to negotiate an end to the war in Ukraine.

Focus is also on U.S. consumer price data due on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3% to an annual pace of 3.0% and away from the Fed's target of 2%.

"A hot print could further strengthen the dollar and cap gains in gold, though I suspect support will remain in place overall as investors seek to scoop up discounts," Simpson said.

Recent softer-than-expected U.S. jobs report boosted bets for a Fed rate cut in September. Markets imply around a 90% probability of a September easing, and at least one more cut by this year-end.

Non-yielding gold thrives in a low-interest-rate environment.

Also on the radar are Sino-U.S. trade discussions as Trump's August 12 deadline for a deal between Washington and Beijing loomed.

Meanwhile, COMEX gold speculators increased net long position by 18,965 contracts to 161,811 in the week to August 5.

Elsewhere, spot silver fell 0.5% to $38.13 per ounce, platinum slipped 1.1% to $1,317.90 and palladium gained 0.1% to $1,127.37.

Source: Reuters